Senate Republicans held a press conference last week on Tax Day to spotlight how DFL tax increases and unchecked spending have driven up costs and made life less affordable for Minnesota families.
Under DFL control, the state budget has ballooned, devouring an $18 billion surplus while imposing $10 billion in new taxes — yet that still wasn’t enough to prevent future deficits. The Tax Foundation ranked Minnesota two places lower this year on its State Tax Competitiveness Index (from 42nd to 44th) keeping the state in the bottom 10 for another year. Data from the National Association of State Budget Officers and the U.S. Census Bureau shows state spending has risen 48% while population has grown by only 6%.
“Our budget is ballooning, but our population growth has remained fairly constant – that should be alarming to every single person in the state,” said Senator Eric Pratt (R-Prior Lake). “I’d venture a guess that most Minnesotans do not think the quality of life here has doubled the way our state spending has. Instead, they are asking for tax relief, and have been making the request for years. Under Democrat leadership, that plea has fallen on deaf ears.”
Democrats have proposed new taxes on social media companies and advertising services, extending the sales tax to financial advice, creating a fifth tier of income taxes, imposing a new statewide property tax, and advancing a constitutional amendment to raise sales taxes for housing.
That refers to comments made in committee by DFL Rep. Meg Luger-Nikolai, who said she may offer an amendment to quintuple tab fee rates to raise more revenue. On the House floor, DFL Transportation Finance Committee Co-Chair Rep. Brad Tabke suggested Minnesota’s tab fees were among the lowest in the region, a claim that is demonstrably false.
“Every time I talk to constituents, tab fees are the top concern – it’s not even close,” Pratt said. “In no world should registering a car be more expensive than a car payment, yet that is a common reality for many. The average five-year total for registering a car in Minnesota is about $3,520. If you drive just across the border to North Dakota, it’s about $465 over that same timeframe. Head down to South Dakota and it’s only $378. Why are rates in Minnesota so shockingly high? A lot of that has to do with legislation passed by the Democrat Trifecta in 2023, which raised tab fees and slowed depreciation. That means everyone pays more for a longer period of time. It’s unsustainable for the average family.”
In addition to tab fees, Republicans blame DFL spending and regulations for driving up property taxes across the state.
“Property tax increases have created a lot of heartburn for many,” continued Pratt. “Seniors on fixed incomes are being priced out of homes, first time homebuyers feel completely excluded from a market they can’t keep up with, and our counties are struggling. We know the legislature cannot directly affect property tax numbers, but what we can do is stop unfunded mandates from being passed onto our counties and townships. The Democrat Trifecta previously passed numerous unfunded mandates that put our locals in a tough spot – they were being forced to adhere to mandates to stay in compliance with state law, but in many cases, they were given no money to do so. So what ends up happening? Costs get passed onto taxpayers via increased property taxes. We need to stop this toxic cycle.”
Despite concerns from local leaders, Democrats introduced a bill to add a new state property tax segment that could cost some homeowners thousands of dollars each year on top of their local property taxes.
In contrast, federal tax changes are delivering some of the largest refunds in years, up nearly 11% and averaging about $3,500 nationally, with nearly half of all filers using new deductions. Additionally, 25% of filers have taken home more of their pay by deducting taxes on tips and overtime. Yet Democrats in Minnesota remain opposed to reducing taxes on tipped and overtime wages, despite bipartisan support during the 2024 presidential campaign.
“The common thread is clear: people are tired of paying more at every turn, without having a better quality of life to show for it. It’s time to reverse the harmful mandates and taxes, and get back to a level of affordability that invites families to live here, and businesses to invest here,” finished Pratt.