give me doughnuts: Lots of banks in the Cayman Islands are nothing more than a post office box; same with corporate offices in Liechtenstein.Crooked, but legal.
I was going to call this mere forum shopping, like when a bank incorporates in South Dakota to avoid usury laws. This part bothers me:
The two companies have entered 25-year agreements that call for Sycamore to "kick back" most of its share of the sales tax on jet fuel - as much as $14 million a year - in exchange for payments of at least $300,000 a year from each airline.
ZAZ: I hate the thousands of pages of special tax exceptions in the federal tax code.
ZAZ: I favor uniform tax rates and don't think that tax rates should be adjusted on a case-by-case basis to attract business.
ZAZ: Lost Thought 00: Sales taxes are owed in the territory where the goods change hands, not where the business is incorporatedOne possibility is that the buyer offset the 9.5% surburban rate against the 8% Chicago rate, leaving Chicago unable to collect tax on a sale otherwise subject to its jurisdiction. You can do this sometimes. The law tries to protect people from paying double sales tax. I don't know if Illinois allows such offsets.
gsiofa: not to mention all the deals New Jersey cuts to get companies to move there.
According to the Chicago Sun-Times:
Both airlines would not comment on specifics of the suit but said what they are doing is legal.That's because while most states say sales taxes should be collected where products are received, Illinois law says they should be collected where the purchase is accepted.In its suit, however, the RTA will argue Illinois law also requires that other factors should be considered besides where the order is accepted.
cgraves67: It may be rural, but Sycamore is still well within Chicago's area of influence in the state. Fark Chicago.
Lost Thought 00: Sales taxes are owed in the territory where the goods change hands, not where the business is incorporated
Land Ark: give me doughnuts: Lots of banks in the Cayman Islands are nothing more than a post office box; same with corporate offices in Liechtenstein.Crooked, but legal.Having been to Cayman a number of times, I can tell you that the corporate headquarters of Cola Cola looks nothing like you would expect.
Saiga410: Sycamore is rural? They are a freak'n burb.
WhackingDay: Seems like a simple fix. Impound all fuel deliveries for said airline until they cough up the tax money.You know, someday we are going to have to play hardball with these corporations or they're just going to keep on doing this shiat.
Stile4aly: Pass a law subjecting all airline fuel offloaded at any Illinois airport to a tax equivalent to the local sales tax, and allow the local sales tax to be a refundable credit against that tax. In other words, fuel is taxed at the point of use, not the point of sale but not subject to double taxation.
TelemonianAjax: Saiga410: Sycamore is rural? They are a freak'n burb.Come down south of I64 and you'll see real rural. and you'll be in Western Kentucky (aka, southern IL, aka Little Egypt).Rural IL don't shiv, son.
Guelph35: Stile4aly: Pass a law subjecting all airline fuel offloaded at any Illinois airport to a tax equivalent to the local sales tax, and allow the local sales tax to be a refundable credit against that tax. In other words, fuel is taxed at the point of use, not the point of sale but not subject to double taxation.Since fuel is used throughout the duration of the flight, are you going to calculate taxes based on the duration of the plane through each city's airspace?
Stile4aly: You calculate the tax based on where the plane is fueled, not where the actual fuel is burned. The point is that these companies are trying to circumvent paying proper sales tax by claiming the purchase occurs in a lower tax jurisdiction. By taxing based on the point of consumption (the actual airport) you prevent them from doing this.
ghare: Crime is always easier on the local level.
Electromax: ***snip***It seems to incite so much more rage when poor individuals are seen to be trying to arrange situations to their advantage as much as possible, but things like this are just generally meh. My blood isn't boiling or anything, but maybe it's because there isn't a clear individual at fault (besides the "corps are people" line) and so they can't be called out and threatened with death/deporation/whatever. Maybe if they rolled out American's CFO who said "i concocted this scheme" people would be more passionate. Fixing situations like this might help all the debt IL and the US are move in positive directions as well, but instead the national media argues about PBS or whatever. A melon scratcher.
BBH: More like Chicago and C(r)ook County are trying to bully the surrounding municipalities because they are losing the money they thought they could steal from the suburbs by enticing major companies to relocate into the City.Fark Chicago and their money hungry politicians.
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