Mitchell legislation would forgive state overpayment to local governments, saving area taxing districts millions

Monticello, IL – With last month’s announcement that the State of Illinois has overpaid $168 million in tax revenue to local governments since 2014, State Rep. Bill Mitchell (R-Forsyth) is sponsoring legislation to forgive the overpayments.

A recent tax system modernization initiative at the Illinois Department of Revenue (IDOR) has uncovered a misallocation to the Personal Property Replacement Tax (PPRT) Fund that began under the Quinn administration. The error has resulted in overpayment of an estimated $168 million to the taxing districts that receive PPRT disbursements. Approximately 6,500 districts are impacted by the misallocation that began in 2014. Monticello CUSD 25 owes the State $830,884. The City of Monticello owes $153,806 and Piatt County owes $222,537.

Representative Mitchell was in Monticello Monday to announce his legislation with local school officials.

“Today is the 300th day of the State of Illinois not having a budget. We have $7 billion in unpaid bills, owe 50,000-plus vendors and are pro-rating funding for our schools. We have no business demanding repayment of millions of dollars from local governments and schools already facing financial difficulties. The State messed up and misallocated PPRT funds, through no fault of our local officials. My legislation forgives the overpayment, allowing local districts to keep the funds, rather than having to repay the State,” said Rep. Mitchell.

Mitchell added that Monticello schools have lost over $700,000 in the past six years due to the State’s proration of reimbursements for school transportation costs.

House Bill 6568 provides that, if a taxing district received an overpayment of moneys from the Personal Property Tax Replacement Fund on or after January 1, 2014 and prior to the effective date of the legislation, then the taxing district may retain the amount of the overpayment and is not required to reimburse the State or any other taxing district.

“We appreciate any assistance that the legislature or Governor’s office can provide in regard to the IDOR error regarding CPPRT announced last week. These are difficult times for all schools - no districts ever like to find out that they will receive fewer dollars than expected during a school year and less dollars in future years. This is yet another black eye for the State of Illinois,” said Dr. Vic Zimmerman, Superintendent of Monticello CUSD #25.