Essay
Bill HF0004/SF2478, if adopted through a vote in the 2026 general election, would “embed in the Minnesota Constitution by adding a section to article X; requiring that a portion of a projected budget surplus be returned to state taxpayers”. If the general fund ends the biennium with a positive unrestricted balance, the commissioner must transfer money from the general fund to the tax relief fund. The amount transferred equals any surplus in the tax relief fund, defined as projected revenues exceeding 105% of projected expenditures. This would prevent future legislatures from reallocating those funds elsewhere. The proposed Bill would limit rapid government growth and provide stricter budget discipline. It does not destabilize future budgets during economic downturns because the returns and tax deductions are one-time, rather than permanent tax returns (Johnson, 2025). The Bill targets the middle class by using a 1,000,000-income cut off. Finally, the Bill is transparent; it uses an established November forecast and a clear formula. The HF0004 Bill is rule-based and non-political; it allows Minnesotans to decide whether surplus tax dollars should be automatically returned to taxpayers instead of being used for limitless government expansion (Nelson, 2025).
The HF0004 Bill is controversial between opposing parties which makes passing the Bill difficult (Revisor, 2025). The Bill is based on forecasted surpluses, not final numbers, so there is no guaranteed return to taxpayers. The refunds are based on tax-liability, so low-income residents may receive little or next to nothing, leading to claims that the HF0004 Bill is unfair (Long 2025). A constitutional mandate may limit lawmakers’ ability to respond to economic uncertainty, infrastructure needs, and other civic demands. Finally, the Bill would be a constitutional amendment; changing or repealing it would require another statewide vote
References
HF 4 Status in the House - 94th Legislature (2025 - 2026). (2025). Mn.gov. https://www.revisor.mn.gov/bills/94/2025/0/HF/4/
Johnson, W., & Kleman, C. (2025). As amended by H0004DE2 Subject Constitutional amendment -tax relief fund. https://www.house.mn.gov/hrd/bs/94/HF0004.pdf
Long, H., & Long, H. (2025, March 18). Bill to place budget surplus referendum on 2026 ballot fails by one vote in Minnesota House | AlphaNews.org. Alpha News MN. https://alphanews.org/bill-to-place-budget-surplus-referendum-on-2026-ballot-fails-by-one-vote-in-minnesota-house/
Nelson, N. (2025). Legislative Update from Rep. Nathan Nelson. Minnesota House GOP. https://content.govdelivery.com/accounts/MNHOUSEGOP/bulletins/3d77eb1