This bill proposes an amendment to the Minnesota Constitution that would establish a Minnesota tax relief account within the state treasury. The account would be funded by projected revenues in the general fund that exceed 105 percent of projected expenditures, as determined by the last biennial budget forecast. The funds in this account would be appropriated biennially for the purpose of returning excess tax collections to taxpayers through refunds or rebates, which would not be taxable, or to offset costs for tax reductions in the state general fund.

Additionally, the bill mandates that the proposed constitutional amendment be submitted to voters during the 2026 general election. The ballot question will ask whether the Minnesota Constitution should be amended to create this tax relief account, specifying that it would be funded by excess projected revenues and used for tax refunds or reductions.