Tuesday, September 27, 2011
Lemont was one of four municipalities that signed on as plaintiffs last week in a complaint alleging improper tax avoidance agreements in Channahon and Kankakee.
Lemont trustees formally agreed Monday to move forward with a Regional Transportation Authority lawsuit that claims the towns of Kankakee and Channahon are using shell offices to improperly divert $20 million in sales tax revenue each year. During its business meeting Monday night, the village board unanimously approved a resolution to become a plaintiff in the RTA complaint, which was filed Aug. 23 in Cook County Circuit Court. The lawsuit alleges that Kankakee and Channahon have benefited from a tax loophole that has some Chicago businesses routing their sales through satellite offices in municipalities with low sales tax rates. The result, according to a Chicago Tribune report, is that companies can sell products at a lower tax cost and…
Friday, September 23, 2011
Four municipalities signed on as plaintiffs Thursday in a complaint alleging improper tax avoidance agreements.
Four Illinois municipalities — including the Village of Lemont — signed on to a Regional Transportation Authority lawsuit Thursday that claims the towns of Kankakee and Channahon are using shell offices to improperly divert $20 million in sales tax revenue each year. The RTA complaint, filed Aug. 23 in Cook County Circuit Court, alleges that Kankakee and Channahon have benefited from a tax loophole that has some Chicago businesses routing their sales through satellite offices in municipalities with low sales tax rates. The result, according to a Chicago Tribune report, is that companies can sell products at a lower tax cost and make their products more marketable. Chicago officials claim that Kankakee and Channahon are benefiting from the …
Thursday, August 25, 2011
Village President Joe Cook said Channahon has yet to be served, but he has read the suit.
Although Channahon Village President Joe Cook said the village has not yet been served with a lawsuit from the Regional Transportation Authority, he has read the suit and thinks the motive is political. “It’s all incestuous and very political,” he said. “They decided to pick on what they saw as the weakest link.” He said the village will vigorously defend itself, and maintains that what the village is doing is totally legal. “We feel like David fighting Goliath but we need to fight it on behalf of our residents,” he said. At the heart of the suit filed by the RTA and further litigation being threatened by the city of Chicago is a sales tax loophole that allows Chicago businesses to route sales through areas with lower sales tax. At 7.25 …
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Tim
6:35 pm on Tuesday, September 27, 2011
That is not the only way lemont would benefit, nor any of the other municipalities. Remember, Metra is part of the RTA, and is currently pushing through a large rate hike (28%) to all its passengers, primarily because of the monies diverted away from it with this tax evasion plan facilitated by Channahon and Kankakee. The Hartney Oil case is different in one very specific way, and that is they … more ›