Tax Rebates 2023: Minnesota governor wants to use state surplus for tax rebates
Asher Notheis
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Gov. Tim Walz (D-MN) is planning to include tax rebates to state residents thanks to Minnesota’s budget surplus. He hinted at such rebates last year.
Walz’s hope to include tax rebates in the state’s upcoming budget comes ahead of the announcement of the state’s budget, which is set for Jan. 24. The budget will also propose indexing state aid for school districts to help combat inflation, according to the Associated Press.
“I think people are feeling inflation, even though it may be cooling a little bit,” Walz told the outlet.
“I think there’s a sense out there amongst Minnesotans, whether they’re conservative or liberal, that a little bit of the surplus could really help.”
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Walz’s original pitch for the tax rebates had been quite generous — giving single filers a rebate of $1,000 and joint filers a rebate of $2,000. However, this proposal only earned lukewarm support from his fellow Democratic lawmakers, and he has yet to announce any new figures ahead of the state budget’s announcement.
The Democratic governor has already started his second term in office earlier this month after winning reelection in November last year. In addition, Minnesota Democrats were able to take control of both houses in the state’s legislature. Walz said he is overall “super optimistic” about productivity going forward.
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Not all of Walz’s fellow lawmakers share his priorities with this rebate, though. House Speaker Melissa Hortman and Majority Leader Jamie Long claimed they want to prioritize tax credits for families, giving Minnesota families $3,000 for every child 5 years old or younger with a cap of $7,500. However, Hortman believes her new tax committee chairwoman, Rep. Aisha Gomez (D), will be able to reach compromises with Walz’s new revenue commissioner, former House tax chairman Paul Marquart, going into the new legislature.