Butler City Council will have to pay back $55,000 in taxes to Rite Aid due to a clerical error made by the downtown business.

City Treasurer Jeff Smith told council Tuesday night that Rite Aid overpaid its business privilege taxes by $88,000 in recent years.

“Their accounting department had made an error for a number of years,” he said. “They were paying us business privilege tax for a facility in Reading, Calif.”

While it was the company’s mistake, Butler is obligated to refund the overpaid taxes for the past three years — which totals about $55,000.

Council will take a formal vote Thursday on whether it will reimburse the full amount. However, council members Tuesday indicated the city will only repay the three years.

The money will come from future business tax collections so council will not be forced to take money from its general fund for the expense.

Rite Aid is at 139 S. Main St.

The city earns about $1.1 million annually through its 7 mill business privilege tax.