County proposes 7.23 percent property tax hike for 2025

REGIONAL- The St. Louis County Board gave preliminary approval last week to a 2025 property tax levy of $180.3 million, a 7.23 percent increase from 2024. The levy increase is slightly below the 7.8 percent growth in the county’s property tax base, which could offset the impact on many property owners.
Over the past year, the county’s tax base grew by $265 million, primarily due to new residential construction. As a result, the tax burden will be spread across more taxpayers, meaning homes with little or no increase in valuation may see no rise, and possibly a decrease, in their property taxes.
The levy increase is aimed at maintaining critical services while investing in staffing. This includes increases in salaries and benefits to address recruitment and retention challenges in the current tight labor market.
“The investments in this levy are really about people, especially ensuring public safety,” said commissioner Annie Harala, chair of the board’s finance committee. “We need to retain our well-trained staff and attract new staff in this competitive hiring market.”
Commissioners Ashley Grimm and Paul McDonald praised Harala and county staff for keeping the levy increase lower than initial estimates.
“As an arm of the state, sometimes our hands are tied,” McDonald said. “There are things we have to do, and to do that, we need more funding.”
The levy also accounts for inflationary pressures on county operations, as well as investments in economic development and community programs, including The Depot.
A final vote on the proposed levy is scheduled for the Sept. 24 county board meeting at the St. Louis County Courthouse in Duluth. By law, Minnesota counties must set their maximum property tax levy by the end of September. While the levy could be lowered as the board finalizes the budget in the coming months, it cannot be increased. The final budget vote is expected on Dec. 17.
The county has scheduled two public input meetings on the levy and budget. The first will be on Monday, Nov. 18 at 7 p.m. at the St. Louis County Courthouse in Virginia. The second is set for Monday, Nov. 25 at the St. Louis County Courthouse in Duluth, also beginning at 7 p.m. The Nov. 25 session will also be livestreamed on the county’s Facebook page.
To learn more about the proposed levy and the current budget for St. Louis County, visit stlouiscountymn.gov/budget.