A week ago, county commissioner Paul McDonald of Ely cautioned that St. Louis County may be in store for sizable tax levy increase.
That moved closer to reality Tuesday when the county board, on a 6-1 vote, gave its initial approval to a 2026 maximum property tax levy of $202,669,428.
That’s 12.4 percent more than was collected in 2025, and came after McDonald indicated in an August interview with the Ely Echo that several factors, particularly unfunded mandates from both the state and federal governments, were driving the increase.
A news release issued by the county this week also cited “needed investment in staff salaries and rising health insurance costs,” noting that the county employs more than 1,900 people.
“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.”
And as McDonald indicated previously, the release from the county noted that much of its work is required by state and federal statute.
McDonald also pointed to federal SNAP (Supplemental Nutrition Assistance Program) benefits, where the county continues to provide the service as mandated, but with less assistance.
County officials also indicated that the levy reflects investments in 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.
The county will also increase its investment in public safety by funding six new positions in the sheriff’s office.
Partially offsetting the impact of the levy increase is the seven percent 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.
The growth of the tax base spreads the total cost of the levy across a larger number of taxpayers.
“The growth that we’re achieving in this county right now is a direct result of investments this board has made, in roads, in infrastructure,” said Nelson. “They don’t go unnoticed. When we make those investments, the private sector sees what’s happening. They see the stability, and they invest.”
Commissioners voted 6-1 to approve the initial levy, with Duluth board member Ashley Grimm in opposition.
The levy will be formally set at the Sept. 9 meeting, which is set for 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.
Commissioners and staff have nearly three months to finalize the county budget and levy, but the levy cannot increase - and could be reduced - between now and final certification in December.
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 [email protected].
St. Louis County collected just over $180 million in property taxes in 2025, which amounted to a seven percent increase from 2024.
