Property taxes are rising across Minnesota: Why?
Federal policy plays a role. So, too, does state government policy, particularly in the form of unfunded mandates.
But local governments themselves must shoulder some of the blame in too many cases. Too often, they need little encouragement from higher levels of government to increase spending, and usually on things which serve no purpose other than to pad the government payroll. Two recent examples come from the Twin Cities.
Hennepin County
In Hennepin County, the property tax base has been squeezed by tanking commercial property values and this has pushed up the burden placed on residential property owners. Even so, this has not inspired county officials to be more frugal with their residents’ cash.
“The Hennepin County Board voted Dec. 11 to approve a 2026 budget of $3.15 billion,” the Laker Pioneer reported last month. “The budget includes a net property tax levy totaling $1.13 billion, which is a 7.79 percent increase from 2025.”
According to the county, the 2026 budget focuses on disparity elimination and climate action across all lines of county business and invests in programs and services that aim to improve longterm outcomes for residents in the areas of connectivity, education, employment, health, housing, income and justice. [Emphasis added]
Alpha News gave more details:
Hennepin County’s proposed 2026 budget would spend more than $40 million on “disparity elimination,” a catch-all term for eliminating perceived inequalities that supposedly exist in the county.
Of that $40 million, over 60% of it would be funded via property tax revenue under the current county budget proposal.
…But what exactly is disparity elimination?
In short, Hennepin County believes that “inequities in education, employment, health, housing, income, justice and transportation are starkest between residents of color and their White counterparts.”
The county’s website notes that “since 2013, Hennepin County has put an emphasis on disparity reduction in all our communities as we acknowledge that racial disparities exist.”
In 2017, then-Hennepin County Administrator David Hough charged the various county departments to do their work “from a commitment to reduce disparities among the residents we serve in the ways and places we have influence.”
Examples of this work in recent years include “adopting a Climate Action Plan,” “declaring racism a public health crisis,” funding an “anti-racism initiative,” “requiring advancing racial equity training for all staff,” and “using purchasing power to drive economic development in disadvantaged communities.”
Last year, Hennepin County spent more than $50 million on disparity elimination. Hennepin County’s 2026 budget proposal includes more than $40 million of spending on disparity elimination.
While the county is proposing a $10 million cut to disparity elimination, the $40 million figure still represents roughly 1.3% of the county’s total 2026 budget. Of the $40 million sum, roughly $26 million of it would come from property taxes under the current proposal.
In the name of fighting disparities, Hennepin County just made life less affordable for its residents.
Ramsey County
Across the river in Ramsey County, KSTP reported last month, “Next year’s county budget includes an 8.25% property tax hike…” More than half of that hike will cover salaries for “nine new positions and a more top-heavy government structure in Ramsey County.”
The newly created roles include a deputy county manager, five administrative division directors, an executive assistant, and two racial and health equity administrators. [Emphasis added]
The salary ranges for the Racial and Health Equity Administrators is 94,452 – $141,684; the median household income in Ramsey County was $81,004 in 2023.
Minnesotans say they are struggling with affordability. One reason is government at both state and local levels which all too often views their incomes and assets as a personal piggy bank.
