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Illinois 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.

(Chicago Tribune) Dozens of companies doing business in the Chicago area are routing their sales through small outlying municipalities with low sales tax rates, siphoning tens of millions of dollars from city and suburban taxing districts.

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 competitors.† Read more.

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