IDOR to Recoup $168 Million in Overpayments to Local Governments

april 20, 2016

On Tuesday, the Illinois Department of Revenue (IDOR) issued a press release stating it had uncovered $168 million in overpayments of Personal Property Replacement Tax (PPRT) to local taxing districts. PPRT are revenues collected by the State of Illinois and paid to local taxing districts to replace money that was lost by local governments when their powers to impose personal property taxes on corporations, partnerships, and other business entities were abolished by the 1970 Constitution.

The range of overpayments to taxing districts varies greatly. While the Pleasant View Park District was overpaid by a mere $10.28, the Chicago Public School District was overpaid by more than $23 million. IDOR estimates that for most taxing districts, the overpayments amount to less than $10,000.

“We are certainly sensitive to the impact recouping these funds will have on some of our taxing districts,” said Connie Beard, IDOR Director. “We will be working with the impacted taxing districts to establish a plan to recapture the funds over an extended period of time.”

For a complete listing of the taxing district affected by the allocation overpayment, see IDOR’s spreadsheet here.

We are working to determine what kind of repayment plan is anticipated by IDOR and assessing how it may impact the current and upcoming fiscal year. If you have questions about how IDOR’s overpayment affects your taxing district, do not hesitate to contact one of the governmental attorneys at Heyl Royster.