Minnesota property taxes statewide may go up close to $1 billion next year

Property taxes across Minnesota could increase by a total of up to billion next year under approved levy increases from counties cities and school boards and other taxing districts adopted in The increases payable in and shared by the state Department of Revenue this week continue a trend in the s as inflation continues to drive up operational costs according to groups representing local governments Statewide levies could reach up to billion next year an increase of from The final number is typically lower than the maximum set in preliminary numbers and is used as a starting point for governments as they set final levies Final property taxes are set by the end of the year after local governments calculate estimates for individual parcels and send property owners truth-in-taxation notices sometime in November Taxing officials must hold community input meetings before they set final levies on Dec To find out about truth-in-taxation hearings in your county check their website Minnesota property taxes totaled around billion in In around billion was collected statewide according to facts from the Department of Revenue Year-by-year Final statewide increases in latest years were as follows state facts shows or million or million or million or million or million or million Federal challenges Changes at the federal level under the administration of President Donald Trump add another likely cost driver with new eligibility requirements for assistance programs like Medicaid according to the Association of Minnesota Counties Nuts and bolts costs like staffing employee benefits capital costs and even gas prices are all up disclosed Matt Hilgart a lobbyist with the group But unpredictability and new rules from higher levels of administration mean new staffing requirements and expenses for counties New mandates coupled with reductions in reimbursements to local governments particularly counties are creating this situation where we re levying now to either hire people to fulfill a mandate that we ve been communicated to do by the state or federal cabinet he announced It feels like we re handcuffed As Trump and a Republican-controlled Congress passed the tax package dubbed the big beautiful bill this summer counties were concerned that they could face financial strain from new administrative requirements on Medicaid and SNAP the Supplemental Nutrition Assistance Undertaking Supporters of the bill touted its tax breaks for individuals Ramsey County levy In Ramsey County which approved a levy hike of or million the biggest drivers of expenses were unfunded mandates from the state of Minnesota employee compensation and directing materials to our core services and improving our organizational performance County Manager Ling Becker stated in September About of Ramsey County s upcoming budget is funded through property taxes The rest comes from the state federal and other local governments plus utility fees and other sources The county raised its levy by in in and in Statewide counties raised their levies by an average maximum of up from previous years when it was around to Cities raised levies by a projected average maximum of roughly in line with new trends Schools raised levies by a projected average maximum of A levy increase is not a property tax increase If a person owns property in a society that has seen new rise like businesses or homes it can offset the levy s effect on the actual tax bill It would be hard for that to happen in Ramsey County since it has limited opportunities for property tax base enhancement particularly as the state s smallest county Hilgart announced The county also has high social services costs posing another challenge The expected maximum statewide increase in would be the highest of the s if it holds but the final increase typically falls anywhere between and Last year the revenue department projected a maximum total increase of million for higher than It ended up being million lower a increase The change was supposed to be even greater between and when state officers predicted a maximum levy increase of or million statewide It ended up being million lower a increase School districts School districts are concerned about uncertainty with federal funding according to Kirk Schneidawind executive director of the Minnesota School Boards Association though inflation and a growing reliance on local levies for funding play a more key role Increases from the state have not kept up with inflation he stated To continue programs and opportunities we ve got to find methods to generate revenue Minnesota s development bill included funding increases of up to to address inflation but two years is not enough time to fix a long-term dilemma Schneidawind explained St Paul Inhabitants Schools was one of a large number of districts where voters approved a levy referendum in the Nov general voting Starting in the district s general revenue will increase by per pupil for years It s expected to raise around million for the district More information on preliminary property tax levies can be exposed on the revenue department s website at revenue state mn us preliminary-property-tax-levies Related Articles Senate takes first step toward ending the executive shutdown Two more special elections coming to Minnesota Capitol Leadership shutdown could become longest ever as Trump says he won t be extorted by Democrats Better parks Safer streets Greener neighborhoods Students inquired to enter Mayor For a Day essay contest Minnesota s federal workers plead for resolution of cabinet shutdown