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The St. Louis County Board has given early approval to set its 2026 maximum property tax levy at $202.7 million — a 12.4% jump over last year.
County officials said much of the increase is driven by rising employee salaries, higher health insurance costs and inflation. St. Louis County employs more than 1,900 people to serve 200,000 residents spread across 7,000 square miles, and leaders say maintaining that workforce is essential to deliver state-mandated services.
The levy also includes funding for six new positions in the Sheriff’s Office and upgrades to county facilities such as The Depot in downtown Duluth.
Commissioner Keith Nelson, chair of the board’s finance committee, said he voted for the increase reluctantly.
“Do I like the number we’re presenting today? No,” Nelson said. “But the reality is we as the county board have to deal with it. We’re ensuring programs continue into the future. I am asking taxpayers to give us more to make sure the community they live in is the community they deserve.”
The sting of the levy hike is softened somewhat by a 7% growth in the county’s tax base, driven by $305 million in new construction — the largest single-year increase in county history. Roughly half of that came from residential building.
Nelson credited past public investments in infrastructure for spurring private sector development.
“The growth we’re achieving in this county right now is a direct result of investments this board has made,” 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.”
The preliminary levy passed 6-1 at Tuesday’s committee of the whole meeting, with Commissioner Ashley Grimm casting the lone dissent. The board will take a final vote Sept. 9 at Toivola Town Hall.
By state law, counties must set their maximum levy by the end of September. The board can lower the figure before adopting a final budget in December but cannot increase it.
Residents may offer feedback at any county board meeting or by contacting commissioners directly. Details on the budget are available at stlouiscountymn.gov/budget.
