And Speaking of Rental Cars....
- The city of Chicago cannot require car rental businesses located outside city limits to collect city taxes on rental cars leased by Chicago city residents, the Illinois Supreme Court has ruled, striking down as unconstitutional a city ordinance seeking to slap a tax on cars rented within three miles of Chicago city limits.
On Jan. 20, the state Supreme Court overturned the decision of a state appeals court, which had declared the city had the power under the Illinois state constitution to demand the tax, even though the rental transactions took place entirely outside of Chicago city limits.
The Supreme Court justices, however, said the tax represents an attempt to improperly stretch the city’s “extraterritorial” taxing power beyond the limits allowed under the state constitution’s language governing home rule cities.
“… The conclusive presumption of taxability based on residency has nothing to do with use of the rental vehicles, as there is no evidence of where the vehicle was in fact driven,” the state Supreme Court justices wrote. “Absent an actual connection to Chicago, the City’s tax … amounts to a tax on transactions that take place wholly outside Chicago’s borders.”
Justice Rita B. Garman authored the unanimous opinion.
Government overreach slapped back by the Illinois Supreme Court - it's like a miracle.
Labels: city politics