Two days after the end of the legislative session, Gov. Tim Walz signed the new two-year state budget into law Wednesday at the Minnesota Capitol.

DFL leaders say it includes historic tax cuts, but Republicans are pointing out historic tax increases.

The $72 billion state budget covers a wide range of issues, from public safety funding to rebate checks that are expected to be sent out this fall, according to a state official.

RELATED: Minnesota officials plan to send direct rebate payments early this fall

Under the budget, a payroll tax will be paid by every employee and employer, for paid family and medical leave. The sales tax on motor vehicles will go up, along with license tab fees and boat registration fees, to help pay for transportation projects.

The gas tax will go up slightly, and there’s also a new 50-cent delivery fee for some purchases of more than $100.

In addition, the seven-county metro sales tax will go up a penny to pay for transit projects and housing programs.

In regard to the rebate checks, couples earning less than $150,000 will get $520, while single tax filers can get $260 if they make less than $75,000. Families earning less than $35,000 will get $1,750 tax credits per child for up to three kids.

In addition, social security income taxes were reduced – but not eliminated.

“There are a lot of bills that will truly help families, the tax bill will – according to the governor – cut child poverty, we passed paid family leave, which a lot of people have been asking for,” said Senate Majority Leader Kari Dziedzic.

“It would be great if the economy could continue forward. You look at the burden this is going to put on Minnesota families and businesses, and you wonder is this going to be sustainable in the long term,” said Senate Minority Leader Mark Johnson.

House Minority Leader Lisa Demuth said the new budget will make life for Minnesotans much more expensive. “Everything is going to cost all Minnesotans more,” she told 5 EYEWITNESS NEWS. “I think there’s going to be a real wake-up call when the reality hits of what has been done.”

CLICK HERE for a look at KSTP’s Legislative Tracker, which keeps record of hot-button issues that were discussed during the 2023 legislative session. Find more political coverage here.

Watch the governor’s bill signing and his reaction to the session in the video players below.