8-23-11
Chicago files 22 page law suit against the City of Kankakee, Village of Channahon and three front companies for business involved in tax-incentive programs that unlawfully divert sales tax revenues from Chicago. This suit is the second one to filed. The Chicago Regional Transportation Authority has also filed a suit on similar grounds asking for up to $100,000,000.
Here is a sample of what is stated in the law suit. "So successful has this scheme been that Kankakee and Channahon now lead the state in annual retail sales per capita at $87,000 and $62,000 respectively, which is ten fold the per capital sales of Chicago and roughly double the per capital sales of municipalities that are home to major retail shopping malls."
The case also says "The Illinois Legislature tried to put a stop to such schemes in 2004 by passing a law prohibiting municipalities from entering into a new sales tax kickback agreements. But Kankakee and Channahon appear to have continued entering into a new kickback agreements with certain undisclosed retailers, including certain Chicago retailers (hereinafter "Undisclosed Retailers"), and concealing the existence of these arrangements behind third-party brokers who purport to "accept" sales in Kankakee and Channahon on behalf of these retailers, and then serve as an intermediary for the kickbacks."
Read the full 22 page legal case here! Give it time to download.