Republican gubernatorial hopeful Lisa Demuth was in St. Paul Tuesday afternoon to unveil her “affordability agenda” for Minnesota. The four-term state lawmaker and speaker of the Minnesota House of Representatives was joined by her running mate, Ryan Wilson.
“As I travel across the state, Minnesotans are saying the same thing: End the fraud, get our money back, and make Minnesota affordable again,” Demuth said at a Tuesday press conference in the rotunda of the Minnesota State Capitol.
Demuth, who unveiled an updated plan to combat fraud last week, proceeded to discuss the ways she would work to make Minnesota more affordable as governor.
First, Demuth said she wants to provide $150 million of property tax cuts, lower property taxes by allowing school districts and local governments to opt out of state mandates, and use future state budget surpluses on property tax rebates.
Additionally, the GOP speaker said she wants to cut Minnesota’s individual income tax for residents in the lowest two tax brackets, eliminate the state tax on Social Security, and end taxes on tips and overtime pay.
Demuth, who noted that Minnesota has the second-highest corporate tax rate in the nation, also told the gathered press that she wants to adjust Minnesota’s corporate tax rate to be “more in line with the national average.”
Perhaps most notable from Demuth’s plan was her proposal to cap car tab fees at $99.
In 2023, Democrats in control of state government adjusted the formula that calculates individual car tab fees. That change resulted in some paying exorbitant, sometimes four-figure, vehicle tab fees and has become a point of major frustration for many.
During the 2026 legislative session, state lawmakers struck a deal that temporarily reduced vehicle tab fees. At her Tuesday press conference, Demuth said she would ask legislators to cap those tab fees at $99 regardless of a car’s value.
That proposal closely mirrors a key achievement of Gov. Jesse Ventura’s, who signed legislation in 2000 which capped vehicle tab fees at $189 for the first two years of vehicle ownership and $99 from then on.
Ventura’s tab fee limits were phased out after the state legislature overrode a veto from Gov. Tim Pawlenty in 2008, thus increasing vehicle tab fees and the state gas tax.
Also at her press conference, Demuth said her administration would not raise taxes, and she would ask state agencies to collectively find $1 billion of savings. On Tuesday, Demuth emphasized that stopping fraud would also make Minnesota more affordable.
“Minnesota has become unaffordable for many families, and fraud is a big part of that,” she said. “How many extra hours did a parent have to work so that the government could tax them, not to cover the costs of a strong economy or strong schools, but actually to feed fraudsters tax dollars that sent money overseas?”
Demuth’s affordability agenda comes at a time when the race for Minnesota governor is just starting to heat up. Earlier this month, Demuth won the GOP nomination for governor of Minnesota while U.S. Sen. Amy Klobuchar won the DFL nomination for that office.
Over the last several months, Klobuchar has been unveiling her plans to combat fraud in state government, lower healthcare costs, and increase student achievement. In recent weeks, Klobuchar has embarked on an aggressive campaign tour of rural Minnesota.
At Tuesday’s press conference, Demuth noted that more plans from her campaign, related to healthcare, education, and the state’s business climate, will be unveiled in the future.
This story has been updated to reflect that Ventura’s tab fee limits were repealed in 2008 during the Pawlenty administration, but Pawlenty did not approve of that repeal.
Luke Sprinkel
Luke Sprinkel previously worked as a Legislative Assistant at the Minnesota House of Representatives. He grew up as a Missionary Kid (MK) living in England, Thailand, Tanzania, and the Middle East. Luke graduated from Regent University in 2018.
