House panel advances constitutional amendment to return surplus to taxpayers; committee approves bill as amended

The Minnesota House Taxes Committee voted to recommend House File 4, a proposed constitutional amendment that would create a tax relief account funded from projected surpluses and direct surplus funds back to taxpayers, and sent the bill as amended to the House Ways and Means Committee.

Representative Rich Johnson, the bill’s author, presented the measure and told the committee the proposed amendment would place language in the Minnesota Constitution requiring return of surplus funds when projected revenues exceed 105% of projected expenditures as determined in the November forecast. “If there’s more than is necessary, we should send it back,” Johnson said.

What the bill would do

As presented to the committee, House File 4 (with the H0004A1 amendment adopted in committee) would create a constitutional mechanism to place surplus funds in a tax relief account and return them to taxpayers rather than allowing unrestricted legislative appropriation of the surplus. Under the proposal, a surplus is defined by the November revenue forecast as revenues exceeding 105% of projected expenditures.

Committee action

Representative Johnson moved the H0004A1 amendment to put the bill “in the shape the author likes” for committee debate; the committee adopted the amendment by voice vote. After testimony and member remarks, Johnson renewed his motion that House File 4, as amended, be recommended to pass and referred to the House Ways and Means Committee. The chair called for voice vote: “All in favor say aye.” The chair announced “Aye. Opposed? Motion prevails.” The committee did not record a roll-call tally in the transcript and forwarded the bill to Ways and Means.

Testimony and positions

Support: Rayanna (Rayanna) Lee, legislative and coalitions director for Americans for Prosperity–Minnesota, testified in support. Lee praised the proposal’s brevity and clarity and argued that surplus funds should be returned to taxpayers. “After all, Minnesotans, not government officials, are the best stewards of their hard earned money,” Lee said, and urged consideration of automatic tax‑rate triggers and spending limits to reduce budget volatility.

Opposition/concern: Nan Madden, director of the Minnesota Budget Project (a program of the Council of Nonprofits), testified against placing the policy in the Constitution. Madden argued the legislature already has authority to return surpluses and that constitutional rules would limit lawmakers’ flexibility to respond to changing circumstances, emergencies or demographic shifts. “A constitutional amendment that puts artificial limits on revenues or spending weakens the ability of Minnesotans to influence the tax and budget decisions that impact their lives,” she said.

Member comments

Several committee members expressed support for returning surplus funds to taxpayers; others—while not recorded as opposing the principle—raised concerns about locking fiscal policy into the Constitution and how that might affect future budgets and mandates. Representative Ciesinski and other members also praised House Fiscal and House Research staff for their follow-up assistance on technical questions.

Action details

- Motion/Amendment: H0004A1 amendment to House File 4 adopted by voice vote. - Final committee action: Representative Johnson’s motion that House File 4 as amended be recommended to pass and sent to Ways and Means was approved by voice vote; chair announced motion prevailed. No roll-call vote was recorded in the transcript.

Nut graf

The committee’s decision advances a constitutional amendment that would require returning forecasted surplus funds to taxpayers rather than leaving surplus spending choices wholly to legislative appropriation. Supporters framed the measure as taxpayer protection; opponents warned that embedding such rules in the Constitution would hamper legislative flexibility in future fiscal conditions.

Ending

House File 4 (H0004A1) now moves to the House Ways and Means Committee for further consideration. Committee staff offered to provide follow‑up analyses on forecast timing and revenue definitions as members requested.