A tax allocation error lead to the overpayment of about $168 million to taxing districts across the state and the entity responsible plans to recollect.
That’s according to a news release from the Illinois Department of Revenue, which says a system upgrade revealed the misallocation to the Personal Property Replacement Tax fund starting in 2014.
A PPRT allocation error report shows Galesburg was overpayed by $113,676, the Galesburg school district had about $198,000 in miscalculated allocations and Knox County took in $72,577 too much.
Knox County Treasurer Robin Davis tells WGIL the county has not received any notice on the error yet.
“I would hope that if there is such an overpayment, they would figure out a way to maybe reduce future distributions rather than to ask for a lump sum back,” Davis says.
IDOR Director Connie Beard said in the news release they “will be working with the impacted taxing districts to establish a plan to recapture the funds over an extended period of time.”
Beard further said the Auditor General’s Financial and Compliance Audit of the department began Tuesday and the error has been disclosed to auditors.
About 6,500 districts were impacted by the miscalculation, most of which were overpayed by less than $10,000.
The overpayment total for 10 taxing districts was $1 million or more, the Peoria School District among them with $1.48 million.
