This bill proposes an amendment to the Minnesota Constitution that would establish a Minnesota tax relief fund within the state treasury. The fund is intended to set aside surplus tax revenue that must be returned to taxpayers each biennium. According to the proposed amendment, if there is a positive unrestricted general fund balance at the end of the biennium, the commissioner will transfer a specified surplus amount from the general fund to the tax relief fund. The surplus is defined as the amount by which projected revenues exceed projected expenditures by 105 percent, excluding amounts required for a budget reserve. The funds in the tax relief fund can only be used for one-time refunds to property and income taxpayers or to offset costs for one-time tax reductions, with specific limitations on eligibility based on income.

Additionally, the bill mandates that the proposed amendment be submitted to voters during the 2026 general election, asking whether the Minnesota Constitution should be amended to create this tax relief fund. The question emphasizes that the fund would be used to return surplus tax revenue specifically to income and property taxpayers with incomes less than $1,000,000.