Officials cite federal reimbursement cuts, mandates behind 2026 levy hikes nearing $1B
Preliminary data show Minnesota’s proposed 2026 property tax levies could rise by about $948 million statewide — up to roughly 6.9% in preliminary figures — with every county proposing increases (more than a dozen double‑digit hikes) and steep city proposals in places such as Otsego (~19%), Arden Hills (~18%) and Lino Lakes (~16%), while Hennepin County’s proposal is nearly 8%. Officials and local government groups say the pressure stems largely from federal reimbursement cuts and new mandates — including reduced SNAP and Medicaid administrative reimbursements and EMT reimbursement cuts — coupled with rising labor, materials and insurance costs; truth‑in‑taxation meetings are scheduled late November–December, final levies are due Dec. 29, and the Department of Revenue will release final totals after the February forecast.
Local Government
Business & Economy
📌 Key Facts
- Statewide preliminary maximum proposed levy increase is about $948 million (reported as "nearly $1B"); the Minnesota Department of Revenue will release final 2026 levy totals after the February revenue forecast.
- Preliminary 2026 levy data show up to a 6.9% increase statewide; every Minnesota county is proposing an increase, more than a dozen counties propose double‑digit hikes, and Hennepin County is proposing nearly an 8% levy increase.
- Several metro cities face some of the largest proposed city levy hikes, including Otsego (~19%), Arden Hills (~18%), Lino Lakes (~16%), St. Francis (~16%) and Crystal (~15%).
- Local government groups (League of Minnesota Cities, Association of Minnesota Counties) and county officials say federal changes are a key driver of the levy increases — specifically reduced administrative reimbursements for SNAP and Medicaid, cuts to EMT reimbursements, new federal workload mandates, and related system inefficiencies that are forcing additional staffing and costs.
- Other compounding cost pressures include rising labor, materials and insurance costs; local officials also cited slow revenue growth and new charges (for example, stormwater) as contributing factors.
- Truth‑in‑taxation public input meetings are slated for late November through late December; law requires such meetings for cities over 500 population, counties, school districts, regional library authorities and certain special districts (some very small townships/cities may list "no meeting").
- Trend and timeline notes: Department of Revenue data show certified (final) levies typically decrease from preliminary amounts after public input meetings; final levy decisions must be made by Dec. 29 and final 2026 property tax statements are due to be mailed by March 31.
- Individual property tax bills will vary based on local changes in tax base growth and classification; local officials (e.g., Hennepin Commissioner Debbie Goettel and St. Francis Administrator Kate Thunstrom) emphasized the need for stable, sustainable funding while pointing to rising costs and slow growth as drivers of proposed increases.
📚 Contextual Background
- The Supplemental Nutrition Assistance Program (SNAP) is a federal nutrition assistance program administered by the U.S. Department of Agriculture Food and Nutrition Service.
- In the federal accounting year that ended September 30, 2024, SNAP total costs were just over $100 billion, a figure that included the federal government covering half of state administrative costs.
- In 2024, SNAP provided assistance to about 41 million people, nearly two-thirds of whom were families with children.
📰 Sources (5)
Why Minnesota property tax levies could spike next year
New information:
- Local government groups (League of Minnesota Cities, Association of Minnesota Counties) say federal changes are a key driver of 2026 levy hikes.
- AMC’s Matt Hilgart cites reduced administrative reimbursements for SNAP and Medicaid, plus EMT reimbursement cuts, increasing county costs.
- Counties report new federal workload mandates and system inefficiencies forcing additional staffing.
- League’s Pierre Willette and AMC explain how rising labor, materials, and insurance costs compound pressures.
- Reminder of next steps: Truth-in-Taxation meetings precede final levies due by Dec. 29; individual tax bills may vary with tax-base growth and classification changes.
Where Minnesota homeowners face the steepest property tax levy increase
New information:
- Metro city specifics: Otsego (~19%), Arden Hills (~18%), Lino Lakes (~16%), St. Francis (~16%), Crystal (~15%) are among the largest proposed city levy increases.
- County detail: Hennepin County proposes a nearly 8% levy increase.
- Scope update: Every Minnesota county is proposing an increase; more than a dozen counties propose double‑digit hikes.
- New quotes: Hennepin Commissioner Debbie Goettel on stability/sustainability and St. Francis Administrator Kate Thunstrom on rising costs, slow growth, and stormwater charges.
Law requires Minnesota taxing authorities to hold public input meetings
New information:
- Preliminary 2026 levy data indicate up to a 6.9% increase, per the Minnesota Department of Revenue.
- Law requires truth-in-taxation meetings for cities over 500 population, counties, school districts, regional library authorities and certain special taxing districts; some small townships/cities may list 'no meeting.'
- Final levy decisions must be made by Dec. 29; final 2026 property tax statements are due to be mailed by March 31.
- Department of Revenue trend data show certified (final) levies typically decrease from preliminary amounts after public input meetings.
Minnesota total proposed 2026 property tax levies may go up nearly $1 billion
New information:
- More precise figure on the statewide maximum levy increase: about $948 million (vs. "nearly $1B").
- Minnesota Department of Revenue indicates final 2026 levy totals will be released after the February forecast.
- Public input meetings are slated for late November through late December as part of the truth-in-taxation process.