Minnesota Property Taxes May Skyrocket by $1 Billion Next Year, Statewide Levy Hikes Reach Historic Levels
Property tax hikes are set to skyrocket across Minnesota next year, with statewide levies projected to reach a record-breaking $14.6 billion – an increase of 6.9% from last year's preliminary numbers. The proposed increases come as inflation continues to drive up operational costs for local governments.
The trend is expected to continue the upward trajectory seen in recent years, with some districts facing significant challenges in funding their core services due to a growing reliance on levies and uncertainty around federal funding. While some areas may experience offsetting growth from new development, such as businesses or homes, others like Ramsey County will struggle with limited opportunities for property tax base growth.
"It feels like we're handcuffed," said Matt Hilgart, a lobbyist with the Association of Minnesota Counties. "New mandates coupled with reductions in reimbursements to local governments are creating this situation where we're levying now to either hire people to fulfill a mandate that we've been told to do by the state or federal government."
Ramsey County, one of the affected areas, has seen its levy increase by 9.75%, driven primarily by unfunded mandates from the state, employee compensation, and "directing resources to our core services and improving our organizational performance." The county's budget is heavily reliant on property taxes, with about 46% of its upcoming budget allocated for this purpose.
The expected statewide increase would be the highest in the decade if it holds true, with some districts facing significant challenges in maintaining their current funding levels. The Minnesota School Boards Association has expressed concerns about uncertainty around federal funding and a growing reliance on local levies to generate revenue.
As the state's education bill included only short-term funding increases of up to 3% to address inflation, two years may not be enough time to fix long-term problems. St. Paul Public Schools was one of many districts where voters approved a levy referendum in the November general election, with their general revenue set to increase by $1,037 per pupil for 10 years.
The full impact of these proposed levies will become clear later this year, as local governments calculate estimates for individual parcels and send property owners truth-in-taxation notices.
Property tax hikes are set to skyrocket across Minnesota next year, with statewide levies projected to reach a record-breaking $14.6 billion – an increase of 6.9% from last year's preliminary numbers. The proposed increases come as inflation continues to drive up operational costs for local governments.
The trend is expected to continue the upward trajectory seen in recent years, with some districts facing significant challenges in funding their core services due to a growing reliance on levies and uncertainty around federal funding. While some areas may experience offsetting growth from new development, such as businesses or homes, others like Ramsey County will struggle with limited opportunities for property tax base growth.
"It feels like we're handcuffed," said Matt Hilgart, a lobbyist with the Association of Minnesota Counties. "New mandates coupled with reductions in reimbursements to local governments are creating this situation where we're levying now to either hire people to fulfill a mandate that we've been told to do by the state or federal government."
Ramsey County, one of the affected areas, has seen its levy increase by 9.75%, driven primarily by unfunded mandates from the state, employee compensation, and "directing resources to our core services and improving our organizational performance." The county's budget is heavily reliant on property taxes, with about 46% of its upcoming budget allocated for this purpose.
The expected statewide increase would be the highest in the decade if it holds true, with some districts facing significant challenges in maintaining their current funding levels. The Minnesota School Boards Association has expressed concerns about uncertainty around federal funding and a growing reliance on local levies to generate revenue.
As the state's education bill included only short-term funding increases of up to 3% to address inflation, two years may not be enough time to fix long-term problems. St. Paul Public Schools was one of many districts where voters approved a levy referendum in the November general election, with their general revenue set to increase by $1,037 per pupil for 10 years.
The full impact of these proposed levies will become clear later this year, as local governments calculate estimates for individual parcels and send property owners truth-in-taxation notices.
the thought of minnesota paying $1 billion more in property taxes next year is just insane 
like what is going on with this state?! i mean i get that inflation and all but come on man cant we do better than this? 
and its not just about the tax itself its about how it affects ppl who dont make alot of money already. i feel for those families who are gonna have to pay even more next year 
I feel so bad for all the families in Minnesota who are going to be hit hard with these sky-high property taxes next year! It's already tough enough dealing with inflation and increasing costs of living, and now they're going to have to shell out even more money just to keep up? 
think we're living in a time where our wallets are paying for everything, not just the basics 
. $1 billion is a crazy number, especially when it's gonna affect ppl who already can't afford much 
it's no wonder they're saying they feel handcuffed by the state's mandates 
gotta wonder if the government has any plan to help these local governments and property owners out 
Property tax hikes are gonna be super crazy in Minnesota next year! 
. I get it, inflation is high and local governments need to fund their services, but $1 billion more? That's just crazy talk 
. Some areas are getting hit harder than others, like Ramsey County, where they're seeing a 9.75% increase and that's not counting the state's unfunded mandates 
. This is definitely a big deal and we should all be paying attention 
especially the schools they're gettin hit hard too 
hope they can figure out a way to make it work
. But overall, I think we need some real systemic changes, not just Band-Aid solutions...
.
. I get it, governments need to make ends meet too, but can't they come up with some more sustainable solutions? Like, what if we started investing in education and infrastructure earlier instead of relying on property taxes as the only way to fund them? 
Just a thought... 
. I'm not sure how much more of this we can take without it affecting our daily lives 
Not cool, guys.
They need some serious support from the state, or it's gonna be tough to keep up with essential services. 
We need to rethink our approach and prioritize funding for essential services. Our kids (and grandkids) deserve better! 
I mean, I'm not saying it's easy or that local governments aren't facing challenges, but $14.6 billion is just wild. 
fingers crossed for a better future