On Monday, March 2, Senate Republicans unveiled several bills to provide tax relief that will make a difference in the lives of Minnesotans. The bills would provide targeted changes for broad relief for workers, homeowners, and drivers across the state.
“When the DFL held the majority in 2023 and 2024, they could have used the $19 billion surplus to provide tax relief for Minnesotans,” said Senator Gary Dahms (R – Redwood Falls). “Instead, they spent the entire surplus, grew government by 40%, and increased taxes and fees by $10 billion. Minnesotans are now paying the price, and we need to work this session to provide meaningful relief and make life more affordable.”
In 2023, the DFL not only increased the base vehicle tab rate but also slowed the rate of depreciation, resulting in higher tab fees year over year. The first tax relief proposal by Senate Republicans is a bill to undo these changes.
“I have heard from constituents who are surprised to see some license tab fees increase, costing Minnesotans more out of their family budgets,” said Senator Dahms. “Our state’s tab fees are an outlier and the steepest in the region. Senate Republicans are working to get this cost back under control.”
Senate Republicans are also proposing two tax conformity bills to align Minnesota with recent federal changes eliminating taxes on tips and overtime pay. This policy has broad, bipartisan support and would allow workers to keep more of what they earn.
The final proposal responds to the rise in property taxes last year. In 2026, local government entities across the state called for better fiscal constraint from legislators because fraud, mandates, and a state spending spree were forcing them into difficult budget situations.
Senate Republicans are proposing to cap property taxes. Rates could be increased over the cap, but only if they are approved at the ballot box. Senator Dahms notes that it is important that the Minnesota Legislature backfills counties to make up the revenue difference.
“Minnesotans’ property taxes continue to climb as our local governments are responsible for numerous new DFL mandates. Senate Republicans have a plan to cap them and provide relief. However, I believe it is essential that the Minnesota Legislature backfills the counties to make up the revenue difference,” Senator Dahms concluded.
Senator Dahms is in his fifth term representing Senate District 15 which includes communities in Blue Earth, Brown, Chippewa, Lac qui Parle, Lyon, Redwood, and Yellow Medicine counties. He also serves as the Republican Lead of the Senate Commerce and Consumer Protection Committee and is a member of the Agriculture, Veterans, Broadband, and Rural Development Committee.