REGIONAL—The St. Louis County Board voted 6-1 Tuesday to give initial approval for a maximum property tax levy of $202.7 million for 2026, a 12.4 percent increase that officials say is necessary to maintain essential services across the county’s vast 7,000-square-mile territory.
The substantial levy increase, which must be finalized by late December under state law, reflects mounting pressures from staff salary needs, rising health insurance costs, and investments in county infrastructure.
Workforce and infrastructure drive costs
Commissioner Keith Nelson, who chairs the Board’s Finance Committee, acknowledged the difficulty of the decision while defending its necessity.
“Do I like the number we’re presenting today? No, but the reality is we as the county board have to deal with it,” Nelson said during Tuesday’s Committee of the Whole meeting. “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.”
The county employs more than 1,900 people to serve 200,000 residents, with much of that work mandated by state and federal law. The 2026 budget includes funding for six new positions in the sheriff’s office as part of increased public safety investments.
Construction boom provides relief
Despite the steep percentage increase in the levy, property owners may see a more modest impact on their individual tax bills thanks to growth in the county’s tax base. St. Louis County recorded more than $305 million in new construction over the past year, the largest single-year increase in county history.
The 7 percent growth in net tax capacity means the total levy is spread across more properties, reducing each owner’s share of the burden. About half of the new construction consisted of residential projects, reflecting continued population and economic growth in the region.
“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,” Nelson said. “They don’t go unnoticed. When we make those investments, the private sector sees what’s happening. They see the stability, and they invest.”
Budget process
continues
Commissioner Ashley Grimm cast the single opposing vote.
The preliminary approval came during Tuesday’s committee meeting at the county courthouse. A final vote is scheduled for Sept. 9 during the next County Board meeting.
Minnesota law requires counties to set their maximum property tax levy by the end of September, giving the board and staff a little time to refine the 2026 budget. While the levy amount can be reduced during final budget negotiations, it cannot be increased beyond the approved maximum.
Commissioners expect to vote on the final 2026 budget on Dec. 16, following additional public input sessions and budget workshops.
County officials emphasized that residents can participate in the budget process by attending any County Board meeting or contacting commissioners directly. Complete contact information is available at stlouiscountymn.gov/countyboard.