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 surplus amount—defined as projected revenues exceeding projected expenditures by 105 percent—from the general fund to the tax relief fund. The funds can only be used for one-time refunds to property and income taxpayers or to offset the costs of 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 specifically highlights that the fund would be used to return surplus tax revenue to taxpayers with incomes less than $1,000,000, ensuring that higher-income individuals are excluded from receiving refunds or offsets.