Taxing bodies are very glad about the distribution of funds that were undispersed for the past four years.
Distribution of tax funds in Lake County
Taxing authorities in Lake County, through distribution of funds, are receiving an unexpected influx of property taxes that had been gathered but not dispersed over the previous four years.
According to Lake County Clerk Anthony Vega, who announced the distribution of funds public last week, the tardy funds totaled nearly $3.12 million.
According to an article by Daily Herald, Vega won the position in November by defeating current occupant Robin M. O’Connor. Vega claimed that after being sworn in, he gave managers instructions to find methods to streamline operations, offer better service, and update policy, thus resulting to the unexpected distribution of funds.
During that process, it was determined funds dating to fiscal year 2019 had not been distributed to local taxing districts as part of the redemption and Greenbook process, according to the announcement.
In accordance to the announcement, these funds dating back to year 2019 were found out to be undispersed to local taxing authorities.
Kania Robinson, Vega spokesperson, unpaid property taxes go into arrears and are then sold in a tax sale. For the existing owner to keep the property, the sold taxes must be redeemed.
According to Robinson, several processes took several fiscal years to complete in full. The tax department’s excessive personnel turnover, a lack of training, and ultimately a lack of monitoring and accountability were the main reasons why the distribution of funds was not completed, she continued.
The money of the unaccomplished distribution of funds were found out to be just sitting in the bank accounts.
The distribution of funds should be finished by the end of August, according to Robinson. On Thursday morning, Vega will give a presentation to the county board’s finance and administrative committee members.
Vega stated that he was pleased distribution of funds to the appropriate places and was “committed to rebuilding the trust” between the clerk’s office, regional taxing agencies, and constituents.
According to Financial Pipeline, during distribution of funds, the majority of mutual funds are structured as trusts, and any earnings that are not transferred to unitholders are taxed at the highest personal tax rate.
Mutual fund trusts are meant to be flow-through vehicles for tax reasons, which means that all profits are transferred to investors.
Following record reconciliation, the distribution of funds totaled approximately $3.12 million was outstanding to more than 200 taxing districts. By fiscal year, about $22,952 was owing in 2019, $596,496 in 2020, $1.56 million in 2021, and $937,229 in 2022.
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