Sunday, August 21, 2011

Sales tax loophole leaves some cities, towns crying foul as firms exploit Illinois law

Some government agencies plan to pursue legal action against companies that set up satellite offices in other parts of the state to avoid higher sales-tax rates in Chicago and the surrounding area


These companies, ranging from catalog houses and appliance retailers to oil companies and computer purveyors, shift the official point of purchase from the Chicago area to such locations as Kankakee and Channahon in order to escape the high sales-tax rates in Cook and some collar counties. One significant advantage for the companies is that they can sell products to customers at a lower tax cost, effectively reducing the purchase price and gaining an advantage over

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