Senate Republicans last week released a slate of bills to provide tax relief that will make a difference in the lives of Minnesotans. The bills propose targeted changes for broad relief for workers, homeowners, and drivers across the state.

“These bills are commonsense measures – we’ve heard the concerns of Minnesota families, and this slate of bills addresses those directly,” said Senator Eric Pratt (R-Prior Lake).

The first bill addresses the significant rise of property taxes last year, totaling as much as a billion dollars all together, due to shifting responsibility from the state budget on to local governments. Last year, about 250 mayors from across the state called for better fiscal constraint from legislators because fraud, unfunded mandates, and a state spending spree were forcing them into difficult budget situations. To address the sticker shock, Senate Republicans are proposing a bill to cap property taxes at the rate of inflation, plus 50% of population growth for cities and counties over 2,500 residents. Rates could be increased over the cap if they are approved at the ballot box, much like school districts are required to.

This summer, Minnesotans were also shocked to see some license tab fees remain stubbornly high, costing drivers thousands of dollars. In 2023, Democrats not only increased the base tab rate, but also slowed the rate of depreciation, resulting in higher tab fees year over year. This rollout includes legislation to undo these changes and save drivers more than $800 over five years. 

The final portion of the bill addresses “conformity” to changes made to the tax code by the federal government. Proposed language would end taxes on tips and overtime for workers. This policy has broad, bipartisan support, and gives service industry and hourly workers more of their hard-earned money in their paychecks every month. There is a maximum deduction on tips of $25,000 and for overtime, and a maximum deduction of $12,500. Both deductions phase out once income hits $150,000 for single-filers, and $300,000 for married-joint filers. It also offers a way for small businesses to retain employees by paying them more without increasing overhead costs.

“Whether it’s higher property taxes, astronomical tab fees, Minnesotans are tired of getting nickel-and-dimed at every turn. These are three commonsense measures we can start with that would make an immediate difference in the lives of Minnesota families across the state. Our high cost of living is a burdensome outlier among other Midwest states. It’s time we listen to the concerns of the people we represent, and once again make our state a desirable and affordable place to live,” finished Pratt.