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Sales Tax Lawsuit Filed Against Village; Channahon Has Yet to Be Served

A statement released Tuesday afternoon by Interim Village Manager Joe Pena says Channahon is following the law.

Crain's Chicago Business is reporting the Regional Transportation Authority has filed a $100 million lawsuit against and Kankakee, alleging to the detriment of the RTA and other taxing bodies.

A portion of has a 7.25 percent tax rate, lower than that of many neighboring communities. Some Chicago-based companies take advantage of that by shifting their point of purchase to satellite offices in the village, thus reducing costs to consumers and making their products more marketable, according to a Chicago Tribune report. As a result, Channahon is receiving the sales tax, instead of Chicago, in some cases.

In a statement released Tuesday, Channahon Interim Village Manager and Police Chief Joe Pena said village officials are aware of reports that Chicago taxing bodies intend to file a lawsuit, but have yet to be served.

The RTA has already filed a $100 million suit against Channahon and Kankakee, according to Crain's report, and Mayor Rahm Emanuel's office is also expected to pursue legal action against the communities on behalf of the city of Chicago.

"We find it surprising that the third largest city in the country would like to file a lawsuit against a small community of 13,000 (residents) whose annual budget is less than half of 1 percent of Chicago's annual budget," Pena said in the statement.

The statement from the village insists Channahon is following the law, and points out that the responsibility of allocating sales tax falls on the Department of Revenue, not individual municipalities in Illinois.

Traci August 24, 2011 at 01:25 AM
ummmm....Interim Village Manager??? Where did Cook go?
Bob August 24, 2011 at 02:29 AM
Maybe Cook quietly stepped away from all his mistakes and false promises, which can only be great news for this village. I hope the new village manager will become more in touch with the people and see exactly what this village needs to progress in the future.
Dawn Aulet (Editor) August 24, 2011 at 06:02 PM
Joe Cook is the Village President. The former village manager, Jamie Bowden, ended his position July 31. See this story for details: http://channahon-minooka.patch.com/articles/channahon-village-administrator-to-leave-after-july-31. Joe Pena is the police chief and the interim village manager.
madominguez August 26, 2011 at 05:01 PM
Mayor Cook is the best mayor,Channahon has ever had and since he has been mayor I have never heard him make promises nor walk away from anything..our Channahon Mayor has always had an open door ..he is always available for us..ask any senior citizen ,when have you had a Mayor come to your house in the middle of the night fix your water heater, sump pump, air conditioner..give you a ride the store, get up in the middle of night to negotiate for kids to go back to school,or ride a snowplow to make sure the roads are safe, or put on his waders and bail water from flooded Rt 6...or your basement in the Highlands. Joe Cook he's our man if he can't do it no one can..

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