Local governments are doing this all over the state, so people should be surprised.
Pass a resolution asking the State Comptroller to subtract any money owed to the tax district and it shall be taken out of income tax refunds or other money one would otherwise get from state government.
Here’s an explanation from Marengo School District 154’s web site about the process:
NOTIFICATION OF LOCAL DEBT RECOVERY PROGRAM
The Board of Education approved and signed an Intergovernmental Agreement with the State of Illinois Comptroller’s Office at its September 28, 2015, meeting.
The purpose of the agreement is to provide Marengo Community High School District 154 access to the Local Debt Recovery Program for purposes of collecting debts owed to it.
The Illinois Comptroller operates a system to aid collection of debt owed to local governing units by offsetting payments to individuals from the State and transferring them to local governing units.
What does this mean to you?
If you have an ongoing outstanding balance, we will provide you with written notification that we are certifying a claim to the Illinois Comptroller’s Office for offset.
An opportunity to challenge the claim through an informal proceeding to refute the claim’s existence, amount, or current collectability shall be provided.
Should the Illinois Comptroller’s Office receive a claim in your name, prior to the Comptroller issuing you a state tax refund, commercial payment, lottery winning, state retirement check, etc., the amount owed to the local government (MCHS) will be deducted and deposited in the Comptroller’s Local Debt Recovery Trust.
You will be provided with a written notice of the action and have 60 days to protest the deduction with the Illinois Office of the Comptroller.
If no protest is made at the end of the 60 day period, the amount owed will be transferred to the local governing unit (MCHS). »