Olmsted County approves action to address property tax levy error

On April 21, 2026, the Olmsted County Board of Commissioners approved action to correct an administrative error that resulted in approximately $1.5 million more 2026 property tax being levied than what was approved by the board of commissioners in December 2025. The error was discovered through internal processes in late March. 

For most residential property owners, the impact of the error, which accounted for about 1% of the total levy, is estimated at approximately $10 to $30 for the year. Olmsted County regrets the error and is implementing additional internal controls to prevent similar errors in the future. 

Because tax statements have already been distributed and many mortgage servicers have incorporated the amounts into escrow systems, correcting the error requires balancing administrative feasibility, taxpayer clarity, cost, and fairness.  

During the board meeting, staff presented several options to the county board to rectify the levy, including the benefits, drawbacks, and costs of each option. They included: 

• Option 1: Reissue new tax statements  
  Recalculate taxes and mail updated statements to all affected taxpayers. 
   
• 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. 
  
  Apply second-half credits without mailing revised statements 
   
• Option 3:
  Make adjustments internally and communicate updates online instead of mailing revised statements.
   
• Option 4: Correct the error through the 2027 levy process 
  Place the additional funds in a secure, interest-bearing account, then apply them to the 2027 levy to reduce next year’s collection. 

Following the presentation and discussion, the board approved the option to correct the error through the 2027 levy process. This approach allows the county to 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. This option was recommended by the Minnesota Department of Revenue.

“Once this error was confirmed, our focus was on communicating promptly with the Minnesota Department of Revenue, the county auditor, and the public,” said County Administrator Travis Gransee. “The board’s action ensures the situation is handled responsibly and in alignment with state guidance.” 

“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. 

A summary FAQ is available on the Olmsted County website. 

Questions about specific impacts to individual taxpayers may be directed to propertyweb@olmstedcounty.gov or 507-328-7670.