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  • Parent Category: News

Kankakee stakes claim to sales tax agreement money

                       *  Daily-Journal reports huge sales-tax win for City of Kankakee  *

An Illinois Appellate Court decision made late last week says the Illinois Department of Revenue cannot reallocate sales tax money to Chicago-area municipalities that serve as headquarters for business with a sales offices in Kankakee.

The result is the City of Kankakee is a winner in what's described as another 'legal victory' in the sales-tax sharing agreements.

The revenue department has sided with the City of Chicago, Cook County and the Regional Transportation Authority in the ongoing legal battle over agreements that generate millions of dollars of revenue not only for the city, but the Kankakee County government as well.

Kankakee City Attorney Chris Bohlen says 'this is a big victory." The Department of Revenue said they weren't subject to review. The court said they just can't take this money.

The daily-Journal reports the revenue department had sent Kankakee a letter stating that it erroneously disbursed to the city $540,811 that should have been reported to Glendale Heights — just one example in the nearly two-year-old fight over sales-tax dollars.

The revenue department said it would recoup the distribution from Kankakee by deductions from future sales tax distributions, but the court ruled in favor of Kankakee.

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