CHICAGO, Aug. 23 (UPI) — Mayor Rahm Emanuel said Chicago will sue two downstate Illinois towns that allegedly conspired with business to deprive the city of sales tax revenue.
The mayor said the Regional Transportation Authority has accused Kankakee and Channahon of enticing companies to set up sham sales offices, the Chicago Sun-Times reported Tuesday.
A spokesman for the authority said under the alleged scheme the businesses purchase goods in Chicago and Cook County suburbs but record the sales as having occurred in Kankakee or Channahon.
The businesses benefit by paying lower sales taxes than those charged by Cook County and getting rebates from the Regional Transportation Authority.
“People are practicing a way of cheating the system and there are people in the business of helping people cheat the system.” Emanuel said, adding that it places a higher burden on the taxpayers of Cook County.
Kankakee Mayor Nina Epstein and Channahon President Joe Cook did not return calls, the Sun-Times said.