This bill proposes an amendment to the Minnesota Constitution that would require a portion of a projected state budget surplus to be returned to taxpayers. Specifically, it establishes a Minnesota Tax Relief Account within the state treasury, which would receive deposits of surplus revenue exceeding 105% of projected expenditures based on the most recent biennial budget forecast.

Funds in this account would be used to provide tax refunds or rebates to Minnesota taxpayers or to offset general fund tax reductions, and such refunds would not be taxable under state law.

The proposed constitutional amendment would be presented to voters in the 2026 general election with the following ballot question:

"Shall the Minnesota Constitution be amended to create a Minnesota tax relief account funded by the amount of projected revenues that exceed 105 percent of expenditures that the legislature must use to refund or reduce state taxes?"

Voters would have a choice to vote Yes or No on the amendment.