St. Paul could raise its property tax levy by up to 6.9% next year, though City Council members said they'd like to reduce that figure as they finalize the city's 2022 budget in the coming months.
In August, Mayor Melvin Carter presented a $713 million budget that would be partly financed by a $176.6 million property tax levy. That would mark an $11.4 million, or 6.9%, increase from what the city is collecting in property taxes in 2021.
The levy is the total amount the city collects in property taxes, not what individual property owners pay.
If Carter's proposal is approved, the owner of a median-value St. Paul home — valued at about $229,000 — would pay an additional $127 in property taxes to the city next year.
Property owners could see additional increases to their tax bills from Ramsey County or the St. Paul school board. The county has proposed a 1.5% levy increase that would translate to an additional $112 for median-value homes in St. Paul.
Like many local governments, St. Paul did not increase its property tax levy in 2021 to avoid adding expenses for families already facing financial hardships during the peak of pandemic-related shutdowns.
The council on Wednesday unanimously voted to set the maximum 2022 levy limit at the level Carter proposed. Members previously recommended keeping the levy increase between 2% and 4% and pledged to look for ways to reduce taxpayers' bills.
The council will vote on a final budget in December.