- Illinois Supreme Court resolved a sales tax allocation dispute between Arlington Heights and Rolling Meadows
- Nearly USD 1.1 million in sales tax was wrongly allocated to Rolling Meadows instead of Arlington Heights from 2011 to 2020
- Cooper’s Hawk Winery and Restaurants was registered in Arlington Heights but incorrectly listed in Rolling Meadows for tax purposes
- IDOR continued taxing Cooper’s Hawk as if it were in Rolling Meadows due to lack of notification from municipalities
- Arlington Heights discovered the error in 2020 and notified IDOR, which corrected future allocations but reimbursed only USD 109,000
- Arlington Heights was advised to seek reimbursement from Rolling Meadows, leading to a legal complaint
- Initial court ruled for Rolling Meadows, but Appellate Court reversed the decision
- Illinois Supreme Court upheld the initial dismissal, stating IDOR has exclusive jurisdiction over such disputes
- Case highlights the complexity of municipal tax disputes and the need for diligent administrative procedures
- Emphasizes importance for municipalities and businesses to verify and update registration details regularly
Source: vatabout.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
