CHICAGO (AP) — The city of Chicago is suing two
northeastern Illinois communities over tax-incentive programs that divert sales
tax revenues from the city.
Chicago joined the Regional Transportation
Authority Tuesday in suing Kankakee and Channahon. The lawsuits follow a story
in the Chicago Tribune that reported dozens of businesses in the Chicago area
are moving purchases through satellite locations in outlying towns to gain a
sales-tax advantage over their competitors.
Chicago Mayor Rahm Emmanuel says the companies are
cheating Chicago's taxpayers. The lawsuit was filed in Circuit Court of Cook
County.
The Tribune reported Sunday that catalog houses,
appliance retailers and other companies have set up offices in places such as
Kankakee and Channahon, which have lower sales taxes than Chicago.
Kankakee and Channahon officials say they've
followed state regulations.
Copyright 2011 The Associated Press.
