All Articles Tagged "out of state taxes"
(Chicago Sun Times) — The city of Chicago will sue Downstate towns that conspire with businesses to deprive the metropolitan area of sales tax revenue, Mayor Rahm Emanuel said Monday. Emanuel said the city will sue Kankakee and Channahon, towns that the Regional Transportation Authority has identified as having enticed companies to set up sham sales offices. The businesses purchase goods in Chicago or the suburbs but use the sham offices to record sales as having occurred in Kankakee or Channahon, said Jordan Matyas, deputy executive director at the RTA. The companies benefit from lower sales tax rates compared with Cook County. They also get rebates that Matyas said can amount to 75 percent to 85 percent of the town’s share of the sales tax.
(Wall Street Journal) — The door has been opened to higher taxes for many out-of-state residents with second homes in New York after a state tax appeals tribunal reversed its ruling on a New Jersey man’s case. The tribunal ruled that a New Jersey resident who worked in Staten Island and bought his parents a home there is subject to pay New York resident taxes, even though the home was used by his parents and the man stayed there only when he visited. That decision last month overturned the tribunal’s previous ruling exempting the man from paying additional taxes for the years 2001 to 2003. The tribunal agreed to rehear the case at the request of the New York state tax department.