On Monday, March 2, Senate Republicans unveiled several bills to provide tax relief that put Minnesotans first. The bills would provide immediate relief for workers, homeowners, and motorists across the state.

“Under Governor Walz and Democrats, Minnesota families are paying too much in taxes while government spending and massive fraud spiral out of control,” Westrom said. “Our tax relief proposals would provide immediate financial relief and put more money back in their pockets, helping families keep more of what they earn.”

The bills proposed at the press conference serve as the foundation for tax relief that targets hardworking Minnesota families. Minnesota’s February budget forecast was bolstered by a stronger national economic outlook, even as the state’s economy is lagging behind. The Tax Foundation also ranks Minnesota 44th out of 50 states for tax competitiveness.

Senate Republicans are proposing two tax conformity bills to align Minnesota with recent federal changes eliminating taxes on tips and overtime pay. Westrom is an author of both tax cut proposals, SF 587 and SF 589. The proposals would create deductions of up to $25,000 for tips and $12,500 for overtime pay. They would phase out at $150,000 in income for single filers and $300,000 for married couples filing jointly.

“Eliminating taxes on tips is a commonsense way to support hardworking Minnesotans,” Westrom said. “It has growing bipartisan backing and will provide meaningful financial relief for working families.”

Cutting and capping property taxes is another key component of Senate Republicans’ tax relief proposal. In February 2026, more than 250 local elected mayors called for greater fiscal restraint, saying Democrats’ unfunded mandates, fraud, and wasteful government spending are forcing cities into difficult budget situations. In their letter, the mayors expressed deep concern about the “fiscal direction of the state and its increasing impact on our cities and the residents we serve.”

To address the sticker shock, Senate Republicans are proposing to cap property taxes at the rate of inflation, subject to a referendum if there is a local need to raise it more. Additionally, Republicans are  proposing to give local elected  officials ways to opt out of unfunded mandates, which is a big part of the recent property tax increases, passed by the DFL trifecta two years ago.

Finally, Senate Republicans are working to lower vehicle tab fees. In 2023, Democrats increased the base rate and slowed depreciation, locking in higher costs for drivers. As a result, tab fees have become the largest source of funding for the state’s transportation budget. The Republican proposal would roll back those increases and save drivers more than $800 over five years.

“Making Minnesota more affordable by increasing take-home pay, lowering property taxes and reducing vehicle costs will encourage economic growth across the state,” Westrom concluded.