City of Kankakee has Serious Problems

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News Archive > 2007 > Dec > 8
The City of Kankakee has some serious problems. Its Police and Fire pension is more than $30, 000, 000 short and the city is legally stealing taxes from other cities.
For_Immediate_Release:

United States of America (Press Release) December 8, 2007 -- The City of Kankakee has some serious problems. Its Police and Fire pension is more than $30, 000, 000 short (http://ci.kankakee.il.us/2007_KCITY_FINANCIAL_REPORT.pdf pages 79 and 80)and the city is balancing its budget by :
1) not counting the pension debt and declaring a Budget Surplus of 2.6 million dollars http://ci.kankakee.il.us/stateofthecity.html
2) legally STEALING tax money from other cities.
As tax increases are considered to meet City and County budgets, Sears Procurement Services, Target, Henry Schein, MTS Consulting and even Michael Vick already pay lower taxes than other area businesses. They rent a Post Office box in the City of Kankakee, Illinois and calls it a "Home Office." They pay sales taxes listing the PO Box in Kankakee.

minutes of the Kankakee City Council meeting approving this agreement:

http://www.ci.kankakee.il.us/council%20meetings%20and%20minutes/11-20-06%5b1%5d.MIN.rtf
Sears Procurement Services already pays lower taxes than other area businesses. They rent a Post Office box in the City of Kankakee and call it their "Home Office." They pay their sales taxes listing the PO Box in Kankakee instead of Hoffman Estates.

The sales tax in Kankakee County is 6.5%.
Kankakee does not provide Police, Fire, Snow or Trash removal (Hoffman Estates does) to these companies so the City of Kankakee "kicks back" 0.75 points to the companies.
To hear Mayor Donald E. Green explain the legal theft of tax dollars from other cities go to Google Video. You can search "Kankakee Tax Scam" or follow this link:
http://video.google.com/videoplay?docid=5264061174171471441&q=kankakee&total=271&start=80&num=10&so=0&type=search&plindex=7
And read how the Mayor takes credit for this at the end of the first paragraph:
http://ci.kankakee.il.us/stateofthecity.html
minutes of the Kankakee City Council meeting approving this agreement:
http://www.ci.kankakee.il.us/council%20meetings%20and%20minutes/03-03-03.MIN.htm
"ATTORNEY BOHLEN: This is a new business–new entity that's.........Sears is centralizing all of the purchasing for all of its stores and all of its entities. And, by purchasing through one of two........this SPS, Inc. will have two locations. One in Hoffman Estates and one here. And, any entity that's in a non..........that's in a lower rate sales tax area will be–they will purchase all of their goods that are purchased outside of the State of Illinois through SPS Services, Inc., which will be the entity located here and it will be located on Court Street. Ah, that means that all the sales taxes will be run through the City of Kankakee. If a Sears store wants to buy "X".........needs "X" for its building, they will buy it through SPS. And, by centralizing that at these two locations, they can................it's good for them, it's good for us for then they can recapture some of the sales tax and for us we can capture sales tax that would never have been here otherwise."
As tax increases are considered to meet City and County budgets, Henry Schein (5315 W 74th St Indianapolis, IN 46268) already pays lower taxes than other area businesses. They rent a Post Office box in the City of Kankakee and call it their "Home Office." They pay their sales taxes listing the PO Box in Kankakee instead of Indianapolis.
The sales tax in Kankakee County is 6.5%.

Kankakee does not provide Police, Fire, Snow or Trash removal (Indianapolis does) to these companies so the City of Kankakee "kicks back" 0.75 points to the companies.
minutes of the Kankakee City Council meeting approving this agreement:
"MAYOR GREEN: Motion carries. Ah, next, is an economic development agreement between the City of Kankakee and Henry Schein. This is a sales tax sharing agreement. I've had this contract reviewed by Mr. Power, so I'm asking for you to allow us to sign this agreement. It is the same agreement that we have done with the other companies we've done the sales tax with. ."
Henry Schein directed $5,184,000 in taxes to Illinois instead of Indiana. Henry Schein received $720,000 in kickbacks from Kankakee. This $720,000 is not listed in the 2006 Annual Report
http://media.corporate-ir.net/media_files/irol/74/74322/Reports/2006AnnualReport.pdf
Mayor's phone: 815-933-0500
Mayor's fax: 815-936-3619
Henry Schein: (317) 876-7800



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Keywords:
Kankakee , tax
Publisher: Phil Dinn




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