A Democrat-proposed constitutional amendment to raise the statewide sales tax to pay for housing appears to be shelved for the year, according to new reporting. In 2023, Democrats began floating the idea of raising the sales tax to pay for housing, but the issue was dropped near the end of session due to broad opposition. This year, Democrats expanded the proposal to a constitutional amendment, which would ask voters to add a sales tax increase of three-eighths of 1% to Minnesota’s state constitution to fund housing programs.
Ranking member of the Housing Committee Senator Eric Lucero (R-St. Michael) released the following statement:
“Housing affordability is a crisis causing many to lose hope of the dream of homeownership in the Walz-Biden economy. Despite this truth, the Democrats sought to impose even more crushing tax increases via a constitutional amendment, further raising the cost of living and crushing family budgets. Those who can least afford Democrat tax increases are the very people who would pay more with higher sales taxes. Democrats continue to offer mere window-dressing solutions and enormous tax hikes on Minnesotans.
“Republicans held strong to stop the Democrat demand for tax increases for this year. We will continue focusing on real solutions to expensive housing by removing government burdensome over-regulation, increasing housing supply, and decreasing housing costs.”
Since taking over state government, Democrats increased taxes by nearly $10 billion and increased government spending by 40%. Republicans held a press conference on Monday, Tax Day, to remind Minnesotans of these tax increases and also discussed the proposed amendment for housing.