RTA Identifies Alleged Tax-Dodging Companies

The Regional Transportation Authority released the names of some of the companies that have or had sales tax rebate agreements with Kankakee or Channaon in a news release on Wednesday.

In the release, the RTA said the names were discovered through a series of Freedom of Information Act requests, filings with the state and court filings outside of Cook County.

The RTA said 70 or more companies may have entered into sales tax rebate agreements with Kankakee or Channahon, according to the news release. The RTA alleges that many of these businesses have rented office space in these towns to avoid paying higher sales taxes from their actual offices in the six-county RTA region.

The RTA said these small, part-time offices are rarely occupied, but companies claim they make purchases—among their largest expenses—from these offices, so they are taxeed at a lower rate.

In the news release, the RTA said it is aggressively investigating these salex tax agreements to determine if they are still being utilized. CTA, Metra and Pace rely on sales tax revenue to fund about half of their annual operating budgets, the RTA said.

One of the RTA's responsibilities is to ensure each publich transit agency receives all of the tax funds it is owed.

16 Channahon businesses on the list

1. Material Services Co. Inc. - 27734 West Bluegrass Drive, Channahon

This is a subsidiary of US Airways Group.  Material Services offers services in the areas of purchasing, inventory control and fuel procurement and management to airline carriers that operate under agreements with U.S Airways Group Inc. or US Airways, Inc.

2. Southwest Jet Fuel Company - 27734 West Bluegrass Drive, Channahon

Southwest Airlines operates more than 3,200 flights a day.  It has approximately 46,000 employees and serves a combined 97 destinations in 41 states, the District of Columbia, Puerto Rico and six international destinations.  Chicago's Midway Airport has more Southwest Airline daily departures (231) than any airport in the country.

3. Plass Appliance & Furniture, Inc. - 27734 West Bluegrass Drive, Channahon

Founded in 1938, Plass Appliance and Furniture is a family-owned business with more than 100 employees. Plass sells home appliances, electronics and furniture from six showrooms and online. A furniture and appliance company with 7 showrooms spread throughout the Chicago area including locations in Elmhurst, Geneva, Marengo, Naperville, Northbrook, Addison and Arlington Heights.

4. Communications Supply Corporation, Inc. - 27734 West Bluegrass Drive, Channahon

CSC distributes a wide range of data communications and security solutions and is a subsidiary of WESCO.  The company has an office in Carol Stream.

5. WESCO Distribution, Inc. - 27734 West Bluegrass Drive, Channahon

Is a publicly traded Fortune 500 holding company.  The company is a provider of electrical, industrial, and communications maintenance, repair and operating and original equipment manufacturers products, construction materials and advanced supply chain management and logistics services.

6. Forsythe Technology, Inc. - 27734 West Bluegrass Drive, Channahon

Forsythe Technology is an information technology consulting firm with approximately 900 employees worldwide.   In 2006, Forsythe became one of the largest, privately-held, 100-percent ESOP-owned companies in the U.S. Its share price on December 31, 2010 was $52.87.

7. Verizon Wireless Network Procurement LP - 27734 West Bluegrass Drive, Channahon

A subsidiary of Verizon Wireless, the company has the largest nationwide wireless voice and data network and 31.5 million customers.  Verizon also serves more than 98 million retail customers nationwide, provides converged communications, information and entertainment services over America's most advanced fiber-optic network, and delivers integrated business solutions to customers in more than 150 countries, including all of the Fortune 500.

8. Cerami Concrete Construction Company, INC. - 27734 West Bluegrass Drive, Channahon

Commercial concrete contractors located in Melrose Park.

9. JL Sales & Manufacturing, Inc. - 27734 West Bluegrass Drive, Channahon

It is a subsidiary of Edwards Engineering also headquartered in Elk Grove, Illinois.

10. Maron Procurement Company LLC - 27734 West Bluegrass Drive, Channahon

Headquartered in Skokie, the company is an affiliate of Maron Electric Company.  Since 1916, the Maron Electric Company has become one of the leading electrical contractors and design/builders in the Midwest and nationally.

11. PSS World Medical, Inc. - 27754 West Blue Grass Drive, Channahon

PSS World Medical, Inc. is a leading national marketer and distributor of medical supplies and equipment to physicians, elder care and healthcare providers in the U.S.  The company also operates the largest distributor of medical supplies to the long-term healthcare and elder care industry.

12. VHS Chicago Market Procurement LLC - 27734 West Bluegrass Drive, Channahon

It is a company headquartered in Berwyn, Illinois that operates as a subsidiary of Vanguard Health Systems Inc., and acts as its procurement arm for facilities in the Chicago area operated by Vanguard including MacNeal Hospital, Weiss Memorial Hospital, Westlake Hospital and West Suburban Hospital.

13. Midwest Generation Procurement Services LLC - 27734 West Bluegrass Drive, Channahon

Midwest Generation (MWG) operates six electric power generating plants in Illinois.

14. NCR Corporation - 27734 West Bluegrass Drive, Channahon

The global leader in assisted service- and self-service machines selling products and services: ATM machines, Retail and Restaurant Point of Sale.

15. The Reynolds & Reynolds Company - 27734 West Blugrass Drive, Channahon

Reynolds and Reynolds delivers the software, business forms and supplies, and professional services that support all areas of automotive retailing for car dealers and automakers.

16. The Relizon Company d/b/a WorkflowOne LLC - 27734 West Blugrass Drive, Channahon

The company provides a wide range of products and services including business documents, electronic print and mail solutions, branded merchandise, label solutions, sales and marketing collateral, and distribution services.

1 Minooka Connection

1. LSP-Kendall Energy, LLC - 150 N. Schuyler, Kankakee

Dynegy Kendall Energy, LLC owns and operates power generation plants. The company was formerly known as LSP-Kendall Energy, LLC and changed its name in May, 2007. The company was incorporated in 1998 and is headquartered in Minooka, Illinois.