Says Measure Cuts Property Taxes, Helps Stabilizes HCMC, Provides Help to Communities Impacted By Metro Surge, Increases Tax Credit for Sustainable Aviation Fuel, Proposes Excise Tax on Social Media Platforms
SAINT PAUL, Minn. – Senate Taxes Committee Chair Ann Rest (DFL-New Hope) said the tax bill – passed by the Senate Taxes Committee Thursday on a voice voice- would send more than $100 million in property tax relief to eligible Minnesota homeowners, help stabilize financially-strapped Hennepin County Medical Center (HCMC) and North Memorial Hospital, reimburse Minnesota communities for costs incurred during operation Metro Surge, and help make Minnesota a leader in production of sustainable aviation fuel. It also proposes a an excise tax on the value of data held by social media platforms, a proposal passed by the Senate in 2025.
“Minnesotans are increasingly worried about the rising prices of gas, groceries and health care which federal actions and policies are accelerating and that target our state.” said Senator Rest. “There is no way our state government can backfill all the holes created by federal actions, but in this time of uncertainty, this tax bill responds to the immediate needs of Minnesota homeowners, families, communities , farmers and businesses.”
The bill:
- Sends over $100 million in direct property tax relief to homeowners in 2026 with a one-time, 12% increase in all Homestead Credit Refunds, averaging $171 per recipient.
- Helps stabilize financially-troubled HCMC and North Memoria Hospitals, two level one trauma centers in Hennepin County valued as statewide assets. It creates a healthcare sales tax of a quarter cent, a 0.25 cent tax rate, raising $84 million annually for 25 years for a variety of county healthcare infrastructure needs and providing funding for costs of uncompensated care at North Memorial ($21 million annually) and HCMC. Hennepin County is the owner of Target Field and the new tax also is to cover facility repairs and improvements.
- Creates a new social media platform data collection excise that will raise millions of dollars from the 14 largest social media platforms. For years, these platforms have made billions of dollars by selling private consumer data from subscribers that they have collected from Minnesotans for free. The measure will also help modernize Minnesota’s tax code to respond to the new AI economy and not a single Minnesotan will pay the tax.
- Increases and expands the Sustainable Aviation Fuel (SAF) credit to support development of clean fuel to replace jet fuel using Minnesota-grown biomass resources. The measure will make Minnesota a leader internationally in SAF production and is supported by agriculture, environmental, and business groups and will open up new markets for farm products.
- Responds to damages caused by Operation Metro Surge with a $2 million fund to ensure communities are relieved of some of the harm done by that recent federal action.
The bill is now awaiting further action in the Senate.
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