Adjustments are possible. For example, local option taxes can be refunded to governmental units if imposed on materials associated with construction projects. Erroneous collections can occur which are also subject to refund. Amended sales tax returns will also be filed. Refunds will most likely be identified after distributions for a given tax period have been made; therefore, account adjustments will be necessary.
When a local option tax is repealed, the local option tax monies, penalties, or interest received or refunded within 180 days after the repeal date are distributed; more than 180 days after repeal, funds are deposited into or withdrawn from the state general fund.