Gov. Tim Walz's budget proposal would make changes to sales tax collections and trim state spending in an effort to stave off a steep shortfall in future years.

House and Senate Republicans balked at Walz’s recommendations and signaled they would resist any new taxes or fees.

He wants to cut the statewide sales tax by 0.075% — which is $0.075 on a $100 purchase — moving it to 8.6% from 8.675%.

Gov. Tim Walz is pitching his first budget under the new Trump era as a counterweight to the incoming president’s threats to impose tariffs, which he says will raise costs on everyday Minnesotans. His plan would lower Minnesota’s sales tax rate for the first time in state history by 0.

In regards to the statewide sales tax, Walz is proposing a .75% reduction to the tax rate alongside provisions to expand the sales tax base to close so-called "loopholes" for service providers, such as bankers and attorneys.

Gov. Tim Walz pitched the first sales tax cut in Minnesota history and curbs to state spending on Thursday as he rolled out his latest budget proposal. Why it matters: It's the DFL governor's opening salvo to a deeply divided Legislature,

Minnesota Governor Tim Walz has proposed his annual budget, and this year, he’s taken a slimmed-down approach. The governor unveiled his budget on Thursday.