Raise taxes to help your neighbors.

[lawrocket 3]

http://news.yahoo.com/chicago-area-rta-united-running-061219669.html

Seems that Chicago and Cook County have some pretty high taxes on fuel. Including airline fuel. So United has a company set up to do the purchases about an hour away from O’Hare in a place called Sycamore, paying Sycamore $300k per year. United knew that Sycamore had a higher sales tax than Chicago or Cook County but got some help from the local government for a guarantee of at least $300k per year.

Quote

The RTA said in a prepared statement that "sales tax dodges" have cost the city of Chicago $133 million in lost sales tax revenue since 2005. They have cost Cook County an additional $60 million and Metra, Pace and the Chicago Transit Authority another $96 million, according to the RTA, which oversees the three agencies and relies on sales tax revenue for much of its funding.

And later in the article it was written,

Quote

The RTA, the city of Chicago and Cook County in 2011 filed lawsuits against Kankakee and the village of Channahon. They alleged that those communities' tax incentive programs are costing other government agencies millions of dollars, because they allow companies to avoid paying higher sales taxes by moving purchases through satellite offices in areas where the sales tax rates are lower.
According to the RTA's lawsuit against Kankakee and Channahon, the agency is owed at least $100 million in lost revenue. The communities contend their programs are legal.

One could see this a couple of ways. I prefer to see it as a remarkable example of the law unintended consequences. Chicago and Cook County want more money so they raise taxes. This means that people and businesses go elsewhere to get a break. Other governments are more than happy to charge less because, well, this is like gravy for them.

I also see this as an example of government showing that it is little more than a money-hungry corporation trying to get money however it can. Sure, almost $300 million since 2005 is a big deal. But corporations are much like people, too – why pay $4.00 for a gallon of gas when you can drive for ten minutes and get it for $3.65?

It also shows that Sycamore is making more money than Chicago because it is charging less.

I’d be interested to see what comes of this. Chicago alleges that all this stuff is going on through the Sears Tower in Chicago itself. United just actually took on a quarter of a million square feet of new lease space in the tower. Makes me wonder whether they’ll look at the analysis and see whether it will be financially viable to move its operations outside of the place and make Chicago a long-term loser in this.

My wife is hotter than your wife.

[kallend 2,027]

Quote

http://news.yahoo.com/chicago-area-rta-united-running-061219669.html

Seems that Chicago and Cook County have some pretty high taxes on fuel. Including airline fuel. So United has a company set up to do the purchases about an hour away from O’Hare in a place called Sycamore, paying Sycamore $300k per year. United knew that Sycamore had a higher sales tax than Chicago or Cook County but got some help from the local government for a guarantee of at least $300k per year.

Quote

The RTA said in a prepared statement that "sales tax dodges" have cost the city of Chicago $133 million in lost sales tax revenue since 2005. They have cost Cook County an additional $60 million and Metra, Pace and the Chicago Transit Authority another $96 million, according to the RTA, which oversees the three agencies and relies on sales tax revenue for much of its funding.

And later in the article it was written,

Quote

The RTA, the city of Chicago and Cook County in 2011 filed lawsuits against Kankakee and the village of Channahon. They alleged that those communities' tax incentive programs are costing other government agencies millions of dollars, because they allow companies to avoid paying higher sales taxes by moving purchases through satellite offices in areas where the sales tax rates are lower.
According to the RTA's lawsuit against Kankakee and Channahon, the agency is owed at least $100 million in lost revenue. The communities contend their programs are legal.

One could see this a couple of ways. I prefer to see it as a remarkable example of the law unintended consequences. Chicago and Cook County want more money so they raise taxes. This means that people and businesses go elsewhere to get a break. Other governments are more than happy to charge less because, well, this is like gravy for them.

I also see this as an example of government showing that it is little more than a money-hungry corporation trying to get money however it can. Sure, almost $300 million since 2005 is a big deal. But corporations are much like people, too – why pay $4.00 for a gallon of gas when you can drive for ten minutes and get it for $3.65?

It also shows that Sycamore is making more money than Chicago because it is charging less.

I’d be interested to see what comes of this. Chicago alleges that all this stuff is going on through the Sears Tower in Chicago itself. United just actually took on a quarter of a million square feet of new lease space in the tower. Makes me wonder whether they’ll look at the analysis and see whether it will be financially viable to move its operations outside of the place and make Chicago a long-term loser in this.

If Sycamore really did sell fuel to United I would agree with your position. However, all that was in Sycamore was a shell office, the fuel was actually sold at O'Hare, which is IN the city of Chicago. I'd like to see a 737 land in Sycamore to gas up.

...

The only sure way to survive a canopy collision is not to have one.

[lawrocket 3]

Quote

all that was in Sycamore was a shell office, the fuel was actually sold at O'Hare, which is IN the city of Chicago

Depends. If the fuel was sold someplace else it can be delivered at O'Hare. I bought a refrigerator once in Fresno and had it delivered to Clovis. Where did the sale occur?

My wife is hotter than your wife.

[kallend 2,027]

Quote

Quote

all that was in Sycamore was a shell office, the fuel was actually sold at O'Hare, which is IN the city of Chicago

Depends. If the fuel was sold someplace else it can be delivered at O'Hare. I bought a refrigerator once in Fresno and had it delivered to Clovis. Where did the sale occur?

The courts will tell us.

...

The only sure way to survive a canopy collision is not to have one.

[blueblur 0]

Generally speaking, sales taxes are paid in the locality the product is finally delivered, where the buyer takes delivery. I.E... you buy something online in California, ship it to Georgia, if the company has no presence in Georgia, you pay no sales tax. If the company has brick-and-mortar in your state, you pay that sales tax.

In every man's life he will be allotted one good woman and one good dog. That's all you get, so appreciate them while the time you have with them lasts.

- RiggerLee