Many local governments have been carrying a liability in their financial statements for overpayments of replacement taxes due to a calculation error by the State of Illinois in 2015-2016, as indications had been that this overpayment would be deducted from future distributions. However, the Illinois Department of Revenue (IDOR) recently issued a notice that there will be no further attempts to recoup these overpayments. For the local government, this means that any liability should be reversed and taken into income.
