Polk County staff report 350 unpaid mobile‑home/RV tax claims, propose 10‑year write‑off policy

County finance staff told the Polk County Board of Commissioners on Jan. 6 that a follow‑up audit of the Minnesota Department of Revenue recapture program uncovered hundreds of delinquent mobile‑home and recreational‑vehicle tax claims stretching back to 2003.

"We have 350 claims and they gave us two weeks," said Speaker 11, who briefed the board on the audit, the county’s obligations under the state recapture process and the extra work required to correct past practice. The program allows counties to file unpaid mobile‑home or similar property tax claims with the state, which can then intercept state refunds or accept direct payment from the taxpayer.

Speaker 11 said the county lacked a formal write‑off policy and did not have current protocols to file timely entries in the Department of Revenue portal. To meet the auditor’s immediate deadline, the county engaged outside assistance (Apto/Abdo) and obtained a short extension to complete the cleanup. "We had the meeting with the department of revenue auditor last week, and to, so we got another extension to respond," Speaker 11 said.

Staff proposed drafting a 10‑year write‑off policy that would allow the county to clear older, low‑value claims. Speaker 11 told commissioners there are roughly 167 claims between 10 and 20 years old that would be candidates for write‑off under the proposed criteria. On average, original claim amounts were small (for many, $25–$35), but penalty and interest have driven the typical outstanding balance to roughly $500 per claim, the briefing said.

Commissioners pressed staff about past audits, staffing and whether the recapture program remains the most cost‑effective way to pursue small claims. "So that is kind of part of the discussion: there might be alternative methods that aren't [the state recapture program]," Speaker 11 said, adding staff will research how other counties handle similar backlogs.

Next steps assigned by the board included drafting formal write‑off criteria, continuing the cleanup with Apto/Abdo, reconciling whether the receivables are correctly recorded in the 2025 financials and reporting back to the board once the Department of Revenue entries are updated. No formal ordinance or budget change was required at the meeting; commissioners asked staff to return with a written policy and follow‑up schedule.

The presentation identified staffing constraints and the timing challenges of a payroll implementation and year‑end audits. The county obtained a limited extension from the auditor and said it will need to reconcile monthly updates to penalty and interest on the recapture portal going forward.