The Ramsey County Board is poised to approve a 2024-25 budget Tuesday that includes a 6.75% property tax levy hike for next year.

It's a jump that has some homeowners worried about family finances amid the rising cost of living.

But not all Ramsey County property owners will see much of a spike in their property tax bills; increases vary by city, property type and assessed value.

The county is seeking to increase its revenue from property taxes by 6.75% as part of an overall 3.5% increase from the 2023 budget, which would give administrators $813.4 million to spend next year.

Here are four things to know about the proposal:

1. The proposed levy increase is roughly double the county's 10-year annual average.

In the past decade, Ramsey County's tax levy increase has averaged 3.2%, according to county data.

Presenting the budget proposal to the county board in August, Ramsey County Manager Ryan O'Connor said the 6.75% increase for 2024 is needed to make up for flat and nearly flat levy increases in 2021 and 2022, during the pandemic. He also said the increase will help keep county service levels consistent and help retain staff as wages rise.

"We are not creating a new list in this budget of shiny ideas," O'Connor said.

Since Ramsey County makes two-year budgets, the County Board will also vote on a proposed $841.8 million budget for 2025. O'Connor has floated a 4.75% property tax levy for 2025, subject to reduction based on marijuana tax revenue.

Across the river, Hennepin County is expected to approve a 6.5% property tax levy increase Tuesday — also its largest hike in a decade.

2. Property taxes make up almost half the county budget.

The county budget funds everything from social services to the Sheriff's Department and jail to elections, courts, libraries, parks, county roads and more.

Property tax revenue brings in 46% of the budget, while 27% comes from other government sources, including state and federal.

3. The amount your 2024 property taxes change depends on many things, like where you live and the estimated value of your property.

The amount property taxes go up or down depends not only on taxes levied, but also on property value. Within the same taxing jurisdiction, when values increase more, so does the tax bill.

In Ramsey County, commercial and industrial properties increased in value the most, so in general they'll shoulder more of the proposed 6.75% property tax levy increase than residential property owners.

Residential property taxes vary significantly by city.

For example, the median-value North Oaks home (worth $802,000) increased in value by 10.3% over the past year. Taxes on it are up by more than 12%, or more than $1,000.

Meanwhile, the median St. Paul homeowner saw a much more modest increase in value and a slight tax bill decrease.

In St. Paul, homeowners with median-value homes in the neighborhoods with the biggest increase in property values — the West Side and West Seventh — have the largest projected increases in taxes.

4. Counties collect taxes, but not all of it goes to the county.

When you receive your property tax statement in the mail, it comes from the county. But it also includes taxes from the city, school district and other entities with taxing jurisdiction. For example, in St. Paul, the median taxpayer's bill has several components that factor into a $50 decrease in taxes in 2024 including:

  • County: +$16
  • City: -$48
  • School district: -$24
  • Other: +$6