St. Louis County Board considers property tax levy for 2025

The St. Louis County Board has given initial approval for the 2025 maximum property tax levy in the amount of $180,310,863. While this is a 7.23% increase in the levy compared to last year, it is slightly below the rate of growth in the county's property tax base of 7.8%, which will help offset this increase for many property owners. 

St. Louis County's property tax base has grown by $265 million in new – mostly residential – construction in the last year. This means the total levy is divided amongst more tax payers, so homes that had little or no increase in valuation will likely see no increase in property taxes or even a reduction.

A home valued at $400,000 will see an approximately $10 decrease in the county portion of its property taxes compared to a home valued at that amount last year. Meanwhile, commercial properties experienced less valuation growth overall this year and will likely see minimal impact on their county property taxes.

More than anything, the proposed 2025 levy demonstrates a commitment to ensure continuity of critical services for citizens, many of which are state-mandated, by investing in staff. This includes an increase in salary and benefits to improve staff recruitment and retention in the current tight labor market. 

"The investments of our levy increase are really around people, specifically investments ensuring public safety," said Commissioner Annie Harala, who chairs the Board's Finance Committee. "We are in a tight hiring market, and we need to ensure we keep our well-trained staff and also attract new and needed staff."

Commissioners Ashley Grimm and Paul McDonald praised Harala and staff for their work to keep the levy increase as low as possible, noting that earlier in the process the number was higher. McDonald added, "Being an arm of the state, sometimes our hands are tied. There are things we have to do, and to do that we need more funding." 

The levy also reflects continued inflationary pressures on county operations, as well as investments in economic and community development, and in community programming such as The Depot.

The vote today was part of the Board's Committee of the Whole meeting. The final vote will occur during the next County Board meeting on September 24, which will be held at the St. Louis County Courthouse in Duluth.

Minnesota counties are required by law to set their maximum property tax levy - that portion of the budget collected through property taxes - by the end of September. As the Board and staff work to finalize the 2025 budget over the next few months, the levy amount may be reduced, but it cannot increase. Commissioners are expected to vote on the final budget for 2025 on December 17.

Two meetings have been set to collect public input on the levy and budget. They will be on Monday, November 18, at the St. Louis County Courthouse in Virginia, and the following Monday, November 25, at the St. Louis County Courthouse in Duluth. Both meetings will start at 7 p.m. The November 25 meeting will also be livestreamed on the county's Facebook page. People do not need a Facebook account to view the meeting.

Citizens also may provide input at any County Board meeting, or by contacting commissioners directly. Contact information can be found at stlouiscountymn.gov/countyboard. To learn more about the proposed levy and the current budget for St. Louis County, visit stlouiscountymn.gov/budget or email budget@stlouiscountymn.gov. – St. Louis County press release