Aero-Insanity #2: Chicago, RTA Attack Tax Havens | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 07.20.15

Airborne 07.21.15

Airborne 07.22.15

Airborne 07.23.15

Airborne 07.24.15

Airborne Hi-Def On YouTube

Airborne 07.20.15

Airborne 07.21.15

Airborne 07.22.15

Airborne 07.23.15

Airborne 07.24.15

EAA/ANN AirVenture Innovation Preview

AIP-#1 Vimeo

AIP-#2 Vimeo

AIP-Part 1 YouTube

AIP-Part 2 YouTube

Sat, Aug 27, 2011

Aero-Insanity #2: Chicago, RTA Attack Tax Havens

Airlines, Others Avoid Millions In Sales Tax On Legal Technicality

If you've ever shaken your fist at local governments that sock it to travelers who have no choice but to pay taxes to fly through their airports, this may be a rare opportunity to root for the big airlines. The City of Chicago has a sales tax as high as 9.75%. So United and American Airlines buy their fuel through subsidiaries in the small town of Sycamore, Illinois, and it has saved them as much as $12-14 million since 2004.

Illinois has a quirk in its tax law that makes sales tax applicable wherever an offer to sell is accepted, not where the product is actually delivered. The Chicago Tribune reports this has turned into a boon for small-town tax havens such as Sycamore, which has enacted tax rebate agreements with airline subsidiaries United Aviation Fuel Corp. and American Aviation Supply, LLC to officially sell the fuel in Sycamore for dispensing into aircraft at Chicago O'Hare International Airport.

Chicago's Regional Transit Authority (RTA) is facing a deficit, and the discovery of the deals has the bureaucrats fit to be tied. Mayor Rahm Emanuel complains, "Companies are gaming the system and cheating Chicago's taxpayers. I have to be the voice for the taxpayers, and I will not tolerate this."

Last Sunday, the Tribune reported that dozens of other companies ranging from catalog houses to oil and computer companies were shifting the official point of purchase for their products from the Chicago area to outlying cities such as Kankakee and Channahon. Both those cities have been named in a lawsuit filed Tuesday by the city and the RTA.

So far, Sycamore has escaped a legal attack, but Chicago officials say they're now targeting the airline deals. Sycamore City Manager Bill Nicklas insists to the Tribune, "We're confident of our legal standing and will defend it all day."

FMI: www.rtachicago.com

Advertisement

More News

Airborne At OSH15 Day 5 Redux: Inhofe's Mission, NextGen GA Fund, New Kitfox

Also: Cicare 8, Switchblade Update, Beringer Alaskan Bush Gear, Jack Pelton Interview - Final E-I-C Note: Regularly Daily Airborne Unlimited Programming will resume this Monday now>[...]

ANN's Daily Aero-Linx (08.01.15)

The BD-5 Web Site The official home of the BD-5 network, the purpose of this web site is to provide information about the Bede Aircraft BD-5, an experimental, homebuilt, single-sea>[...]

ANN's Daily Aero-Term (08.01.15): Notice To Airmen (NOTAM)

A notice containing information (not known sufficiently in advance to publicize by other means) concerning the establishment, condition, or change in any component (facility, servi>[...]

Aero-News: Quote Of The Day (08.01.15)

"The fairing separation is one of our very first critical events. If it doesn't work as planned, it's probable the mission cannot continue." Source: Mike Hawes, Lockheed Martin Ori>[...]

ANN FAQ: Aero-Twitters Offer Instant Alerts For Breaking News

Say Hello To Aero-Twitter! Twitter is designed to work on a mobile phone as well as on a computer (and can be accessed via your IM clients). All Twitter messages (called "Tweets", >[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2015 Web Development & Design by Pauli Systems, LC