Ramsey, Washington and Dakota counties all are seeking property tax levy increases this year, as they deal with higher costs in areas such as construction, labor and healthcare as well as the end of federal pandemic money.
Homeowners and other property owners in the east metro have seen the proposed hikes on their property tax statements. There is a distinction between the levies imposed by counties and those from their city, county, school district and other special taxing jurisdictions. Up to a dozen different taxing authorities — including mosquito control districts — contribute to the total payment due at the bottom of a tax statement.
“They’re looking at a tax statement that comes from us, but it includes the city, the school district,” said Ramsey County Commissioner Rafael Ortega, who said he, too, has shouldered years of sizable property tax increases.
Ortega noted home prices have soared in recent years in higher-end neighborhoods like St. Paul’s Highland Park, while many long-undervalued properties in poorer neighborhoods are effectively playing catch-up as their estimated market values spike. Values also have shifted, leveled off or dropped for commercial office buildings, apartment buildings, industrial properties and small businesses in St. Paul while rising for St. Paul homeowners.
“I’ve been paying 15% increases on both mine and my mother’s properties for the last five years,” Ortega said. “You take a place like the East Side that has such low values, but their taxes jump higher because of the increase in assessed value. They’ve been undervalued for so long.”
Beyond growing home values, Ramsey and several other counties experienced deep cuts to state County Program Aid over time, and between 2006 and 2018 in particular.
Increased costs
Construction costs that soared during the pandemic as prices rose for materials and equipment have yet to abate, and a labor shortage continues. Meanwhile, counties are facing rising costs for everyday labor and healthcare. In surveys conducted by the Association of Minnesota Counties, one county reported its health insurance costs ballooning by almost 18% next year.
“That’s a 6.8% tax levy increase alone,” said Matt Hilgart, the government relations manager for the association.
For most counties, “the amount of their budget that is financed with property taxes has grown,” Hilgart said. “There isn’t one single reason why. While some state local government aid has grown very recently after decades of lack of funding or incremental increases, general expenditure spending has also grown.”
Counties “carry out the majority of core social services delivery for most of Minnesota, and I think it’s fair to say some of those mandates have grown over time,” Hilgart said. “Counties across the state, and including Ramsey County, are having to hire more social workers, case managers, and more child protection workers to fulfill both new mandates and increased community needs. These costs show up as wage increases, but in reality, it’s driven by the state mandate to provide certain services.”
Here’s a round-up of proposed property tax levy increases in Washington, Dakota and Ramsey counties as well as how their budgets have grown in the past 10 years.
Ramsey County
In St. Paul, a median-value single-family home had an estimated market value of $267,400 for taxes payable this year. That value will go up 3% to $275,300 for taxes payable in 2025. That owner would see overall property taxes — city, county, school district, Met Council and more — go up $337, an 8.8% increase.
Nearly 46% of the county’s proposed 2025 budget is funded by property tax, an increase of less than 1%, or $17.6 million, compared to the current fiscal year. The rest comes from intergovernmental revenues, charges for services and other sources.
The proposed county budget for 2025 is $848.6 million.
Ramsey County’s public truth-in-taxation hearing will be held at 6 p.m. Dec. 11 at the Hallie Q. Brown Community Center, 270 N. Kent St. in St. Paul. Doors open at 5:30 p.m. and interpreters will be available. County commissioners plan to approve the 2025 supplemental budget and property tax levy at their Dec. 17 board meeting.
The Ramsey County Board set next year’s maximum tax levy increase at 4.75% in September, though it could be altered up to the final vote.
Ramsey County budget
• 2015: $622.8 million.
• 2016: $645 million.
• 2017: $660.8 million.
• 2018: $714 million.
• 2019: $738 million.
• 2020: $741.7 million.
• 2021: $763.1 million.
• 2022: $774 million.
• 2023: $785.7 million.
• 2024: $808.5 million.
• 2025: $848.6 million (proposed).
Washington County
Washington County’s 2025 budget is $361.6 million, or $9.65 million less than in 2024. The proposed tax levy increase is 5.9%.
Of the total county budget, property taxes cover $140.48 million, or 38.8%.
There was a decrease in Washington County in the estimated median-value single-family home’s market value from $422,400 in 2024 to $411,400 in 2025. The median increase from 2024 to 2025 for the county portion of taxes is approximately $24, or 2.6%.
The county’s truth-in-taxation hearing was Nov. 26. The county board will vote on the final tax levy and budget at the Dec. 17 board meeting at the Washington County Government Center in Stillwater.
Washington County budget
• 2015: $228.7 million.
• 2016: $219.2 million.
• 2017: $211.2 million.
• 2018: $224.3 million.
• 2019: $288.1 million.
• 2020: $282.2 million.
• 2021: $288.5 million.
• 2022: $316 million.
• 2023: $378.9 million.
• 2024: $371.3 million.
• 2025: $361.6 million (proposed).
Dakota County
The recommended 2025 maximum levy of $167.7 million for Dakota County represents a 9.9% increase from the amount levied in 2024, according to officials with Dakota County Finance.
A median-value single-family home in Dakota County carried an estimated market value of $372,000 in 2025 and 2024. Per the proposed levy, the owner would see their taxes go up 5.87%, or $39.62, to total $714.35 next year as compared to $675 in 2024.
“In 2024, the county maintained the lowest levy per capita in the state of Minnesota and the lowest property tax rate among the seven metropolitan counties,” reads the staff report in county budget documents.
Nearly 30% of the county’s 2024 budget was funded by property tax, which according to the county, “is the largest and most stable source of funding.” The proposed budget for 2025 is $532.9 million, with an operating budget of $377.5 million.
The county’s truth-in-taxation hearing was Tuesday night. The county board is expected to vote Dec. 17 on the final budget and levy.
Dakota County budget
• 2015: $245 million.
• 2016: $269 million.
• 2017: $246 million.
• 2018: $249 million.
• 2019: $262 million.
• 2020: $278 million.
• 2021: $294 million.
• 2022: $290 million.
• 2023: $306 million.
• 2024: $336 million.
• 2025 $377.5 million (proposed).
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