1099G for State overpayment error in prior year

Last year I owed (and paid) a lot of NYC Unincorporated Business Tax at tax time (thanks to income fluctuation).  I made the payment online and due to a tech error on the payment platform, the payment went through twice.  I requested to have the second (duplicate) payment refunded.  Now I've received a 1099-G reporting the refunded amount as a state tax refund, which I guess it is. 

 

How would I correct this?  It doesn't seem logical that I should owe income tax on this when it is offset by the original overpayment.