Refunds or Reserves? Olmsted County Board Chair Discusses Fate of $1.5 Million in Overbilled Property Taxes

Rochester, MN (KROC-AM News)- The Olmsted County Board of Commissioners will address a property tax over collection error later this month. 

Read More: Olmsted County Discovers Overcollection of 2026 Property Taxes 

That’s according to Olmsted County Board of Commissioners Chair Dave Senjem, who discussed the situation during an interview on News Talk 1340 KROC-AM and 96.9 FM’s Rochester Today. 

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

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In the announcement regarding the over collection, 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 also indicated the Minnesota Department of Revenue had the same recommendation.

Olmsted County Board Chair Dave Senjem Discusses What Could Happen With Extra Property Tax Collections

Senjem says the error stemmed from a "double application” of funding for libraries in the county. He called it a “regrettable error.” 

Regarding the possibility of refunding the money instead of holding onto it, Senjem called the idea a “fair request” and said it needs to be looked at, however he also said the county is not prepared to issue checks to property owners. 

Read More: Olmsted County Approves 2026 Budget, Elected Official Salary Increase 

“We don’t have a computer program ready to turn on and crank out checks that are proper and correct based on the proportionality of what your property values are and what the taxes are and what one percent of that is,” Senjem said. 

What Would Happen if the County Holds onto the Overbilled Money?

If the county decided to hold onto the extra $1.5 million, Senjem said the money would “go into a strong box, a vault. We’d escrow it. Hands off.” 

Senjem says the county board is planning to discuss the issue during the Administrative Committee meeting scheduled for April 21. The issue will go to a round-table discussion during the meeting. 

“It’ll be wide open and transparent in terms of where every commissioner feels about this after they’ve understood all of the options,” Senjem said. 

The meeting begins at 4 p.m. at the Riverview Conference Room at the Olmsted County Government Center in downtown Rochester.

Senjem is encouraging anyone who cannot make the meeting but wants to weigh in on the issue to contact the board. 

Contact information is available here. The full interview is available below.

Correction: A previous version of this story said the discussion would take place during the Physical Development Committee at 1 p.m.