CHICAGO — Chicago and the Illinois Regional Transportation Authority filed lawsuits Tuesday against the cities of Kankakee and Channahon for their roles in tax-sharing agreements with retail companies that allow them to avoid collecting the Chicago area's higher sales tax rates.

Both lawsuits were filed in Cook County Circuit Court and seek to put a halt to the arrangements and recoup lost sales tax dollars. Under the arrangement, the two cities serve as the point of sale for processing purposes on purchases. Illinois imposes its sales tax at the location where the seller operates, not the buyer, as most other states do.

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