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The Freeborn County Board of Commissioners on Tuesday approved abating penalties for late property tax payments for the first half of 2020 property taxes. 

The vote extends the date late payment penalties begin from May 16 to July 15. 

Freeborn County Administrator Tom Jensen said the relief had been in the works with Freeborn County Auditor-Treasurer Pat Martinson for several weeks and noted the county took action on it after seeing no action being taken on the state level. 

Of the counties that have taken action, 95% have abated penalties like Freeborn County did, Jensen said. Other counties chose to only abate taxes for businesses or other variations. 

He said the county wanted to abate taxes across the board for both individuals and businesses, with the understanding that most people not working are getting unemployment. He noted the hospitality industry, particularly, is feeling a lot of pain, and he hoped this would allow them to get back up and running. 

Those who are not experiencing financial hardship due to COVID-19 are still encouraged to make their first-half property tax payments by May 15 if possible. All escrow and ACH payments previously set up by individual taxpayers will be processed by the May 15 due date. 

Jensen said he anticipates this to be the easiest tax period to deal with, and he said he is more afraid in thinking of what will happen for the second half of 2020 taxes and into 2021. 

Second District Commissioner Dan Belshan asked how the county’s action would affect cities, townships and school districts. 

Jensen said contact has been made with all of the entities, and they were advised to contact the county if the action would put them in any position of pain. He said there was some discussion with District 241. 

Martinson said there will be a separate distribution after the July 15th date to taxing authorities, so they will have that money as soon as possible. 

“We’re very hopeful,” Jensen said. 

Martinson is seeing some taxes coming in now, he said, and he reminded taxpayers that there are many things the county is mandated to do. Without the taxes, it can’t comply with the services it is required to provide.

Fifth District Commissioner Mike Lee questioned whether small businesses and farmers who are really struggling could approach the county on a case-by-case basis regarding not charging late fees beyond the July date. 

Jensen said statute allows the board to engage with the auditor-treasurer on any type of late fees, so he believed that would be possible.

Martinson said Tuesday afternoon no criteria had been developed for such cases at this point.

Matt Benda of Peterson, Kolker, Haedt & Benda Ltd. in a statement submitted to Jensen before the meeting asked the commissioners to approve an abatement period longer than July 15, ideally until the second half of property taxes are due in the fall. 

“Given the lack of uncertainty on when the economy will be opening back up, a 60-day extension is not enough time to allow for planning and filling cash flow needs,” Benda wrote. 

“The argument that the budgets of our local municipalities cannot absorb a longer-term abatement approach are misplaced. The goal should be to keep farmers in the field, homeowners in their homes and businesses open. This small step is something within your power and your budgets and can make a difference in helping property owners prepare for success in the long-term. This simple step would send a positive message to our entire community that we are in this together.”