Dakota County Considering Significant Property Tax Levy Increase for 2027
Published: August 10th, 2026.
DAKOTA COUNTY: Dakota County officials are considering a significant property tax levy increase for 2027 as the county continues working through its budget planning process.
During an Aug. 4 County Board Finance Work Session, county officials reviewed several potential levy scenarios as they work to address rising costs, state and federal funding changes and a structural budget deficit.
The scenarios presented to the County Board included potential levy increases ranging from 13.9% to 24.3%, depending on the level of spending and service reductions ultimately included in the 2027 budget.
One scenario recommended by the county manager calls for an 18.7% levy increase. Under that scenario, the county estimates the annual county property tax impact on a median-value home would increase by approximately $145 per year.
The 18.7% scenario would also require approximately $10 million in spending reductions and a net reduction of about 23 full-time-equivalent positions, according to county budget planning materials. Approximately 13 of those positions are currently filled.
Potential reductions under that scenario include changes affecting library hours and collections, social services, parks programming, corrections, sheriff's office programs and other county operations.
County officials said state and federal mandates and funding shifts are contributing to budget pressures. Those changes are projected to add more than $7.3 million in levy-supported costs in 2027, including changes involving SNAP, Medical Assistance, long-term support services and corrections funding.
Other state-mandated service increases are projected to add approximately $2.3 million, including higher regional treatment center costs, court-appointed attorney expenses and social services funding reductions.
Other levy scenarios presented during the budget planning process include a 24.3% increase, which would avoid service reductions and is estimated to increase taxes on a median-value home by approximately $200 annually.
A 21.2% scenario would require approximately $5.4 million in reductions and carry an estimated $167 annual increase for a median-value home.
A 16.3% scenario would require approximately $14.5 million in spending reductions and a reduction of roughly 56 full-time-equivalent positions, with an estimated annual impact of $123 on a median-value home.
An earlier 13.9% scenario would require approximately $19.2 million in reductions and a reduction of roughly 94 full-time-equivalent positions.
The figures remain part of Dakota County's ongoing 2027 budget planning process, and a final property tax levy has not been adopted.
Dakota County has two additional budget open houses planned this year. One will be held Thursday, Sept. 10, from 5–6:30 p.m. at the Dakota County Western Service Center, 14955 Galaxie Ave. in Apple Valley.
Another is scheduled for Tuesday, Dec. 1, from 5–6 p.m. at the Dakota County Administration Center, 1590 Highway 55 in Hastings.