2026 Property Tax Levy Error: Public FAQ
Olmsted County recently identified an administrative error that added an unintended $1.5 million to the 2026 property tax levy. The error was discovered internally, reported immediately, and publicly announced after consultation with the Minnesota Department of Revenue.
The Olmsted County Board of Commissioners has decided to correct the error through the 2027 levy process. This approach means the county will securely hold the additional funds in an interest‑bearing account and apply them to the 2027 levy, reducing the amount that would otherwise need to be collected next year.
Please review the frequently asked questions below for more information.
What happened?
Earlier this year, Olmsted County identified an administrative error that resulted in an additional $1.5 million being included in the county’s 2026 property tax levy. The error was a duplicate entry connected to the county’s annual appropriation for library services.
How was the error discovered and communicated?
Olmsted County staff identified the error internally and notified county leadership. Leadership then contacted the Minnesota Department of Revenue (DOR) for guidance. After receiving guidance from the DOR, the county issued a press release to the public.
How much does this error affect an individual taxpayer?
The impact varies based on property type and value. For most homeowners, the impact will be between $10 and $30 for the entire year.
Residents can also look at Line 6 on their property tax statement and multiply it by 0.0106 to estimate the specific impact.
The 2026 county levy is approximately $143 million. The $1.5 million error represents about 1% of the levy.
What other options besides the one chosen were considered? Determine which option to remove per decision above.
Three other primary options were considered, as explained below.
- Option 1: Reissue new tax statements
Recalculate taxes and mail updated statements to all affected taxpayers.This option has an added cost of approximately $70,000.
Because of the timing near the due date, this option would also cause potential added confusion, particularly working with lending institutions to correct more than 52,000 escrow accounts.
- Option 2: Recalculate tax for second-half payment
Keep first‑half bills as issued and apply any overpayment as a credit to the second‑half payment.
This option allows for more time but would still incur $70,000 added costs.
- Option 3: Apply second-half credits without mailing revised statements
Adjust internally and communicate updates online instead of mailing revised statements.
This option would not cost added funds, but taxpayers paying by mail would need to access their updated statement online. A significant number of accounts may show overpayments at year-end, which would require manual review of each account and introduces the potential for additional errors.
Who is responsible for approving the levy numbers?
The county board has final authority for the levy amount. Staff in Property Records & Licensing finalize the numerical entries into required systems.
Has the county taken accountability?
Yes. The county board and county administrator have publicly accepted responsibility and emphasized the county’s commitment to transparency and community trust. Staff raised the issue promptly, and all steps have been taken to ensure accuracy going forward. Accountability is shared across the team and corrective actions have been taken to improve processes.
What is the county doing to prevent this from happening again?
The county has already strengthened internal controls within both Finance and Property Records & Licensing, adding additional verification steps and reviews. Leadership has expressed full confidence that these changes will prevent future errors.
What is the county’s commitment to residents?
Olmsted County remains committed to:
- Maintaining community trust.
- Being responsible stewards of public funds.
- Providing transparent communication.
- Continuing to deliver high quality services.
Olmsted County leadership acknowledges the seriousness of the issue and is committed to earning and maintaining the public’s confidence.