State Overpayments

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The State of Illinois claims the Department of Revenue overpaid all taxing districts when it distributed personal property replacement tax money in 2014 and 2015.

The misallocation was noticed during a recent tax system modernization initiative. It’s been discovered the state overpaid about $168 million to local governmental units in Illinois.

Department of Revenue Director Connie Beard said the earliest the department might begin to recoup the overpayments would be January of next year. No plan has been released whether districts will be asked to pay back money or the amounts will be withheld from future disbursements.

Every school district, fire district, township and municipality is affected.

The largest amounts of overpayment in Bond County were to Bond County Unit 2 by $45,676; the County of Bond by $17,538; Mulberry Grove Unit 1 by $8,462; the City of Greenville by $7,820; Kingsbury Park District by $4,360 and the Greenville Fire Protection District by $3,360.

The Kaskaskia College District was overpaid about $61,893.

Surrounding cities and school districts affected by the misallocation were Hillsboro School District by $158,659; the City of Hillsboro by $2,535; Carlyle School District by $41,299; City of Carlyle by $4,007; Highland School District by $66,128; City of Highland by $21,431; Vandalia School District by $32,957; and City of Vandalia by $7,491.

Personal property taxes are collected by the state and paid to local governmental units to replace money lost when their power to impose personal property taxes on corporations, partnerships and other business entities was eliminated.

A complete list of the overpayments by taxing district can be seen on line at tax.illinois.gov.