A calculation error in the Corporate Personal Property Replacement Tax, or CPPRT, has forced the State of Illinois to cut back on moneys owed to local entities, and that error could greatly impact one local school district.
Dr. Vic Zimmerman, Superintendent of Monticello Schools, says the news came down just a few weeks ago that there was a miscalculation in the funds distributed for CPPRT, and entities received too much money. Now they want it back.
CPPRT is a revenue source from the 70s that captures the taxes from corporations that taxed both property and equipment. Zimmerman says CPPRT has become a steady source of income for several entities in Piatt County.
The unexpected announcement and the news that there was an overpayment was very much suspicious but Dr. Zimmerman says he had several questions answered and now believes the overpayment was an honest mistake.
Dr. Zimmerman points out CPPRT cycles up and down in five to seven year cycles. He says they are viewing this as a downturn in that cycle and they will put into motion what they planned on for many years, and utilizing reserves for when CPPRT is not always on an upswing.