Agency sues Kankakee over tax incentive program

CHICAGO (AP) — The Regional Transportation Authority is accusing the city of Kankakee in a lawsuit of ignoring a state law that requires communities to disclose contracts with companies that have moved there to take advantage of tax-incentive programs.

The lawsuit, filed Friday accuses Kankakee of ignoring the RTA's requests for information under the state's Freedom of Information Act is the latest chapter in a legal fight over the practice of businesses in the Chicago area moving purchases through satellite locations in outlying areas. The agency says the practice is costing it tens of millions of dollars in lost revenue from sales taxes.

The RTA has also sued United Airlines, alleging the airline falsely claims to buy jet fuel in a rural community to avoid paying millions of dollars in sales taxes.