Ramsey County Board Workshop: Projected Impact of 2026 Taxes Payable – September 2, 2025

This workshop, held on September 2, 2025, provided an overview of the 2026 property tax process, including market value, tax capacity, levies, and tax rates. County Auditor Tracy West led the presentation, covering key trends, equity implications, and comparisons with other metro counties. Commissioners asked questions and discussed the implications for homeowners, renters, and businesses. No votes were taken.

Discussion Items

• Property Tax Process Overview: Tracy West explained the components: market value, net tax capacity, levy, exclusions, classification rates, and tax rates. In 2025, Ramsey County collected over $1.1 billion in taxes for about 45 taxing authorities, with 35% going to the county, 33% to cities, 23% to school districts, and 9% to other districts.
• Market Value and Tax Capacity Trends: Market values have increased over 50% since 2016 but are leveling off, with an overall 2.3% increase year-over-year. Residential values are rising, while agricultural, commercial, and apartment values are decreasing, shifting the tax burden to residential properties. Tax capacity is increasing by 2.8% overall, but slowing growth creates fiscal pressure if service costs continue to rise. Exempt properties (14% of market value) do not generate tax.
• Levy and Budget: County Manager Ling Becker presented the proposed 2026-27 budget. The 2026 levy increase is 9.7%, and 2027 is 7.5%. Over the past five and ten years, Ramsey County's average levy increase of 3.7% is the second lowest among metro counties.
• Impact on Homeowners: For a typical single-family home, the average tax increase is $22 per month (4.4%). The median value home sees a 4.3% increase. North Oaks School District (621) has the highest projected increase at 8.9% ($75/month), while North St. Paul (622) has the lowest at 1.4% ($5/month). Within St. Paul, the Thomas Dale area sees the largest increase (7.3%, $19/month), while downtown St. Paul sees a decrease of 0.8% ($2/month).
• Equity Concerns: Property taxes are regressive, as they are tied to property values rather than income. Lower-income households bear a heavier burden. For example, Little Canada (median income $71,370) and White Bear Township (median income $124,000) have similar monthly tax increases ($18 vs $19), but the impact is disproportionate. The homestead market value exclusion and state refund programs help mitigate regressivity.
• Downtown St. Paul Trends: Downtown accounts for 3% of the county's tax capacity, down from 4.4% in 2019. Commercial tax capacity declined 11% year-over-year, while residential and industrial grew modestly. If large delinquent properties forfeit to the state, downtown's share could fall to 2.5% by 2028, shifting more tax burden to residential properties. The city could diversify the tax base through residential development and mixed-use redevelopment.
• County Comparisons: Ramsey County has the lowest average residential market value among metro counties but among the highest average county taxes paid and highest tax rates. This is due to lower property values, higher service demands (urban core services), and slower tax base growth. Commissioners discussed the disproportionate service burden on Ramsey County, with many clients from other counties, and the possibility of seeking reimbursement from those counties. County Manager Becker noted that many programs already bill other counties, but front-door costs are not fully recovered.
• Requests for Public Education: Commissioners requested that the county produce a video tutorial explaining the property tax system, similar to those from other counties, and improve the county website to help residents understand the process. Auditor West agreed to work with communications.

Key Outcomes

• The county board will certify the 2026 maximum levy on September 23, 2025.
• All taxing jurisdictions must certify levies to the county auditor by September 30, 2025.
• Notices of estimated taxes will be mailed to residents between November 10 and 24, 2025.
• Property tax relief programs (homestead exclusion, state refunds) are available at www.revenue.state.mn.us.
• No formal votes were taken, as this was a workshop.