St. Paul eyes tax base growth to steady property taxes
Source: twincities.com
TL;DR
- St. Paul leaders debate ways to grow the tax base and steady property tax hikes after eye-popping bills hit owners.
- A 5.3% levy increase adds about $107 yearly to taxes on a median $289,000 home, atop county and school levies.
- Ideas center on industrial development, downtown revival, service cuts, and policy shifts like land value taxes to ease homeowner burdens.
The story at a glance
St. Paul property owners face steep tax bills after a 5.3% city levy hike approved in December 2025, prompting talk of expanding the tax base through redevelopment and efficiencies. Key figures include City Council President Rebecca Noecker, Mayor Kaohly Her, and business advocates pushing ideas like industrial zoning and downtown investments. The article lays out these strategies now as bills arrive and budget pressures mount from a 2025 cyberattack and vacant sites.
Key points
- Industrial land offers high taxes per square foot with low services; upcoming study eyes sites like the 40-acre closed Smurfit WestRock plant, which paid $300,000 yearly.
- Redevelopment targets include the 122-acre former Ford Plant, Heights golf course site, and Midway's United Village commercial builds.
- PAULIE online permitting system, pushed by Mayor Her to aid business, stalled after 2025 cyberattack; blight like the old CVS at Snelling and University lingers.
- PILOT payments from nonprofits eyed, but past task force found low interest; 25% of properties tax-exempt, mostly government and schools.
- TIF districts cover 58 areas and 7% of tax capacity; rent control since 2021 may undervalue apartments, though defenders cite jobs and housing gains.
- Land value tax would hit vacant lots harder but needs state law change via Rep. Steve Elkins' 2025 bill; examples from Altoona, PA, and abroad.
- Downtown push includes $5M Vitality Fund, arena upgrades with $600M investment, and goals for 20,000 more residents and jobs.
Details and context
St. Paul approved the levy hike amid rising valuations that shift more burden to homes as commercial values lag. The city calls itself "pretty lean," per Noecker, but eyes shared services with Ramsey County—like libraries or parks—and fewer rec centers (26 in St. Paul vs. 8-15 in peer cities). Cutting city pensions for 401(k)s and opening non-union bids also surface as cost trims.
Downtown blight between parks and underused light-rail spots hinder growth; pedestrian tweaks, less parking, and fixes on streets like Fifth and Kellogg aim to draw density. Challenges include lawsuits over bike paths and nonprofit resistance to PILOTs, which brought "small and unreliable" cash before.[[1]](https://www.twincities.com/2026/04/05/st-paul-tax-base-property-taxes/)[[2]](https://www.twincities.com/2026/04/05/st-paul-tax-base-property-taxes)
Key quotes
- Rebecca Noecker, City Council president: "You increase revenue, cut costs or both. Expanding the tax base is a way of increasing revenues. And efficiencies is a way of cutting costs, but for the most part, we’re pretty lean."[[1]](https://www.twincities.com/2026/04/05/st-paul-tax-base-property-taxes/)
Why it matters
Rising property taxes strain homeowners in a city with stagnant commercial growth and 25% tax-exempt land, risking affordability and services. For St. Paul residents, this means higher bills unless base expansion or cuts deliver; businesses could see easier permitting and incentives. Watch a forthcoming industrial land study, arena funding requests, and any land value tax bill progress, though state approval remains iffy.
LANG: en