St. Louis County Board Backs 12.4% Maximum Property Tax Levy Increase For 2026

St. Louis County

DULUTH, Minn. — The St. Louis County Board has approved a 12.4 percent maximum property tax levy for 2026.  A final vote will happen at the next board meeting Sept. 9 before a state-required deadline of the end of the month.  The full budget will be voted on by the  middle of December.   Below is the full news release from the county Tuesday.

The St. Louis County Board has given initial approval for the 2026 maximum property tax levy in the amount of $202,669,428. This is a 12.4% increase in the levy compared to last year, though the impact will be somewhat reduced by the county’s 7% increase in property tax base.

Needed investment in staff salaries and rising health insurance costs are among the largest factors contributing to the levy increase. St. Louis County employs more than 1,900 people to deliver services to the county’s 200,000 residents living across 7,000 square miles. Much of the work the County does is statutorily required, and maintaining a strong workforce is necessary for delivery of these services. The County is increasing its investment in public safety by funding six new positions in the Sheriff’s Office.

The 2026 levy also reflects investments in County infrastructure, including The Depot and other facilities. Reduced funding from County Program Aid and other state and federal revenue sources, coupled with new state and federal legislation also impacts the levy. Inflationary pressures factor into the increased levy, as well.

“Do I like the number we’re presenting today? No. but the reality is we as the county board have to deal with it. We’re ensuring programs continue into the future,” said Commissioner Keith Nelson, who chairs the Board’s Finance Committee. “I’m supporting this with the reality that this is going to impact the taxpayers that I represent. I am asking them to give us more to make sure the community they live in is the community they deserve.”

Partially offsetting the impact of the levy increase is the 7% growth in the county’s net tax capacity. The County saw more than $305 million in new construction in the last year – the largest single year increase ever in St. Louis County. Half of that growth is in new residential construction. When the county’s tax base grows, it means the total levy is divided among more people, thus lessening the percent that each is responsible for.

“The growth that we’re achieving in this county right now is a direct result of investments this board has made,” Nelson added, “in roads, in infrastructure. They don’t go unnoticed. When we make those investments, the private sector sees what’s happening. They see the stability, and they invest.”

Today’s vote was part of the Board’s Committee of the Whole meeting. It was 6-1, with Commissioner Ashley Grimm opposing. The final vote will occur during the next County Board meeting on September 9, which will be held at the Toivola Town Hall.

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 2026 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 2026 on December 16.

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.