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Winnebago County Must Pay $626K From Tax Overpayment

Winnebago County

Winnebago County is still working on a way to repay the $626,000 it owes the state after a tax error. 

The mistake occurred when the Department of Revenue overpaid thousands of state districts for their 2014 Personal Property Replacement Taxes.  The funds would normally go to Winnebago County’s general fund and retirement system, but this year’s will need to be partially repaid.  County Administrator Stephen Chapman is frustrated at the state’s lack of a repayment plan.      

“The state, I assume, will reduce future payments to us.  I don’t know how long.  I think they’re trying to determine how that process would work.  Obviously that would give us less revenue to take care of the services we have to provide,” he said.

Independent taxing districts in the area were similarly affected.  The city of Rockford was overpaid $900,000, while Rockford Public Schools will eventually have to pay back over $2.5 million.  RPS said whatever plan it works up with the Department of Revenue will minimize the repayment’s effect on learning. 

A full list of the affected districts, including funds owed, can be found here.

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