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District 62 warned of sharp drop ahead in corporate personal property replacement tax revenue
Summary
Staff told the board the district's corporate personal property replacement tax receipts rose during 2021–23 but are projected to decline to approximately $4.9 million this fiscal year and the district is budgeting $3 million for next year.
District finance staff warned the Board of Education on April 21 that corporate personal property replacement tax (CPPRT) receipts, which the Illinois Department of Revenue distributes to taxing bodies, have fallen sharply from pandemic-era peaks and could decline further next year.
A district presenter said CPPRT receipts historically were between $3 million and $3.5 million annually before rising to about $5 million in 2021, then roughly $10 million in 2022 and $11 million in 2023 amid pandemic-era federal stimulus and unusual business activity. “We're looking this year at 4,900,000.0,” the presenter said, describing the latest Department of Revenue figure for the district; staff said they planned to budget $3 million for the next fiscal year in anticipation of further declines.
Staff explained the state calculation can be opaque because adjustments and company-level audit activity feed into the aggregate distributions. The presenter described the formula as a “crazy jumble of numbers” and said local officials receive periodic statements from the Illinois Department of Revenue rather than a predictable per-taxpayer formula.
The staff presentation framed the change as a known risk the district has been watching; the presenter said the intent was to alert the board so they can plan conservatively. The district said distributions typically arrive in multiple payments over the year rather than as a lump sum.
Ending Finance staff said they would report any significant changes and advised the board to plan using conservative estimates for CPPRT receipts in next year’s budget.
