Chicago Mayor Rahm Emanuel's law chief sent Smollett a letter dated March 28 demanding he pay $130,106 - plus 15 cents - within seven days.
A spokeswoman for Smollett's legal team declined to comment on the latest development.
Smollett had claimed that supporters of President Donald Trump had attacked him and assailed him with homophobic and racist epithets while dousing him with bleach and hanging a noose around his neck.
Smollett, who is black and gay, touched off a social media fire storm by telling police on January 29 that two apparent supporters of U.S. President Donald Trump struck him, put a noose around his neck and poured bleach over him.
Nonpayment will likely lead the city to sue Smollett, prompting a civil trial where the threshold for proving he staged the incident will be lower than in criminal court.
Emanuel and Chicago Police Superintendent Eddie Johnson had said they were not only furious with the outcome of Tuesday's surprise hearing, but also blindsided by the decision itself, with the officials learning that Smollett wouldn't face charges for allegedly faking a hate crime at the same time the public found out. Lightfoot will be Chicago's first black female mayor.More news: Calling Lionel Messi "God" Is Blasphemous, Pope Francis Warns Fans
"We are disappointed the local authorities have continued their campaign against Jussie Smollett after the charges against him have been dropped", Holmes said in a statement to ET.
Lori Lightfoot will be sworn in as mayor of Chicago on May 20, and could reverse any legal action her predecessor is taking.
Particularly, the police cite three Foxx policies: Not prosecuting theft felonies under $1,000 in value, or most drivers with invalid licenses or most small marijuana cases.
Suburban Chicago police associations have added their criticism. Groups representing police chiefs in the north, west, and south suburbs all approved votes of "no confidence" in Foxx ahead of Thursday's announcement. She said she welcomes a federal review of the Smollett case.
Police ultimately came to believe Smollett staged the attack to bolster his profile and career.
Foxx's office told WLS-TV earlier that the chiefs' criticism was "an excuse to justify" resistance to reform.
Smollett was given a week to write a cashier's check or money order in the amount of $130,000.