Olmsted County Board to Decide Fate of $1.5 Million in Overbilled Property Taxes Tuesday

Rochester, MN (KROC-AM News)- The Olmsted County Board is set to discuss the fate of an extra $1.5 million the county collected in property taxes. 

Read More: Olmsted County Discovers Overcollection of 2026 Property Taxes 

Earlier this month, the county issued a statement indicating it had collected an extra $1.5 million in property taxes for this year’s budget.

The incorrect amount due has already been issued to property owners and sent to mortgage providers. 

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During an interview on News Talk 1340 KROCAM and 96.9 FM’s Rochester Today, County Board Chair Dave Senjem said the overbilling stemmed from a "double application” of funding for libraries in the county.

He called it a “regrettable error.” 

In its initial announcement regarding the overcollection, Olmsted County Administrator Travis Gransee said staff would recommend the county hold onto the extra money and allocate it towards the 2027 county budget. 

Senjem added that the Minnesota Department of revenue also recommended the county credit the extra money towards next year’s budget. 

Read More: Olmsted County Board Chair Discusses Fate of Overbilled Property Taxes 

Senjem said if the county holds onto the money, it would “go into a strong box, a vault. We’d escrow it. Hands off.” He also said the extra $1.5 million collected from tax payers would not be spent in 2026. 

Olmsted County Board to Be Shown Four Options to Address Overbilled $1.5 Million in Property Taxes

The agenda item for Tuesday night’s meeting indicates staff is presenting the elected leaders with four options to address the over collection. 

The first listed option is reissuing corrected property tax statements, the second is adjusting the October property tax payments to reflect the corrected levy. 

Option three is refunding the overbilled tax dollars while correcting the amount within the tax system. The fourth option listed is crediting the extra corrections to next year’s property tax levy. 

Senjem said the board’s decision making process will be, “wide open and transparent in terms of where every commissioner feels about this after they’ve understood all of the options.” 

See Also: NWS Confirms Five Tornado Touchdowns in Southeast Minnesota 

Board members are also scheduled to be briefed on steps the county is taking to prevent an over collection from happening again.

The meeting begins at 6 p.m. at the Council/Board Chambers at the Government Center in downtown Rochester.