Olmsted County wants to give property owners more time to pay their taxes without penalty

County leaders want to give property owners experiencing financial challenges due to COVID-19 extra time to pay their taxes without penalty.

On Tuesday, the Olmsted County Board of Commissioners signaled its support for pushing the date in which penalties would kick in to July 15. Typically, the first half of the year's property taxes are due May 15.

While there was some initial discussion on what criteria would be used to determine whether a property owner is eligible for the extension, commissioners generally favored the idea of keeping it open to anyone who would benefit from having an additional 60 days.

“We have got enough stuff to do.. and you know, I like to believe that most of our public are doing the right thing and trying to pull together here,” said Commissioner Jim Bier. “So, I don’t see a need to have extra paperwork or filling out forms and trying to make it more difficult for people.”

Board Chair Matt Flynn further suggested that capping eligibility based on a property owner’s tax bill — as some other counties have proposed — would be unfair to large industries such as hospitality and agriculture that are currently experiencing economic hardship.

“I am not personally going to pick and choose” which property owners are eligible for an extension, said Flynn. “I think we are all in this together.”

If approved on the 21st, the tax extension would apply to both commercial and residential property owners (though property owners who are in a position to pay on time are encouraged to still do so).

Asked whether the extension would adversely affect the budget, County Administrator Heidi Welsch said an analysis has determined that delaying the deadline would not cause any major disruptions to cash flow.

County staff now plan to come back to commissioners for a formal action at the board’s next meeting on April 21. In the meantime, however, county leadership is urging the Legislature to address the issue statewide.

“I am really hoping that between now and the 21st… that the state comes up with a broad solution that would work for all 87 counties,” said Welsch.

In addition to the county, the Rochester Area Chamber of Commerce has also called on the state to take action to delay the May 15 deadline.

“This relief is essential now," Chamber President Kathleen Harrington wrote in a letter last week to Minnesota Gov. Tim Walz. “The impact of this crisis on businesses and their employees, especially small businesses, is nothing short of grave. Business continuity is critical and a delay in paying property taxes without penalty will permit businesses to focus on employee retention, optimize state and federal programs, and be better positioned for the resumption of operations and recovery.”

Sean Baker is a Rochester journalist and the founder of Med City Beat.