Officials from Illinois’ Regional Transportation Authority praised Gov. Pat Quinn’s signing of legislation that requires public disclosure of sales tax agreements between local governments and companies that the RTA and some other governments complain result in lost revenues.
“Before considering rate increases or any other revenue options that would burden our transit riders, we’re committed to identifying and collecting all of the sales tax revenues rightfully owed for the support of our transportation system,” the RTA’s executive director Joe Costello said in a statement
Under sales tax rebate agreements, certain municipalities align with “tax consultants” that represent businesses located in higher taxing areas like Cook County. They allegedly set up sham sales offices to record transactions as occurring in those cities with a lower sales tax rate. The RTA has sued several municipalities to halt the practice.
The bill signed by Quinn requires local governments who strike such agreements to file information on their agreements with state officials