During Fiscal Year 2014, former Governor Quinn’s Administration overpaid at least $168 million in Personal Property Replacement Tax (PPRT) payments to thousands of local governments and schools, according to data recently uncovered by the Illinois Department of Revenue (IDOR).
Senate Republican lawmakers have questioned whether the over-payments reflect mere incompetence, or a deliberate effort by the Quinn Administration to funnel money to Chicago during an election year. A review of over-payments revealed more than $23 million was directed to Chicago schools and almost $20 million to the City of Chicago.
Regardless of why the over-payments occurred, communities and school districts across the state will be asked to repay that funding—an expense that has many concerned. As the Department works to recoup the misallocated funds, the Rauner Administration is sensitive to the impact this will have on local governments and schools. According to 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.”
The over-payments appear to have been caused following a switch to new reporting forms. According to IDOR, the issue was discovered during the agency’s implementation of a new general ledger system. Ten taxing districts received over-payments of more than $1 million. Most were much smaller, including 5,291 taxing districts that received less than $10,000 in over-payments.