Olmsted County Board Votes to Retain $1.5 Million in Overbilled Property Taxes, Will Credit Funds to 2027 Levy

Rochester, MN (KROC-AM News)- Olmsted County will retain the $1.5 million it overcharged property tax payers. 

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The Olmsted County Board of Commissioners made the decision to credit the over collected funds to next year’s property tax levy Tuesday on a 4-3 vote. 

Earlier the month, the county announced they had discovered the billing error. 

Olmsted County Board Votes to Credit $1.5 Million in Overbilled Tax Dollars to 2027 Levy

A statement issued by the county following the vote said the billing mistake was discovered during an internal process in March. 

Holding onto the extra money collected from property tax payers was one of four options presented to the elected leaders. 

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The three others were reissuing corrected property tax statements, adjusting the October property tax payments to reflect the corrected levy, refunding the overbuild tax collections. 

How the Commissioners Voted

Commissioners Mark Thein, Laurel Podulke-Smith, Brian Mueller and Michelle Rossman voted in favor of the measure.

The nay votes were cast by commissioners Dave Senjem, Gregg Wright and Bob Hopkins.

Retaining the extra money and applying it towards next year’s tax levy was the original recommendation by county staff and by the Minnesota Department of Revenue. 

Read More: Olmsted County Board to Decide Fate of Extra $1.5 Million Collected from Property Tax Owners 

The statement from the county indicates the overbilling costs the average property owner $10-$30 for the year. 

Commissioner Mark Thein called voting to hold onto the money until next year the “fiscally responsible thing.” 

He said the county will generate an $60,000 towards next year’s levy by bonding the over collected funds and indicated it would’ve cost the county $70,000 to correct the error this year. 

“The board carefully evaluated the available options. We take our responsibility to taxpayers and our commitment to long-term stewardship seriously,” said Olmsted County Board Chair David Senjem. 

Senjem previously stated the overbilled funds cannot be spent this year. 

“Olmsted County regrets the error and is implementing additional internal controls to prevent similar errors in the future,” the statement from the county says.