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Appellate panel: Chicago's three-mile radius car rental tax OK as tax on 'use' not 'transaction'

Scott Holland Sep. 29, 2015, 4:20pm

The city of Chicago can pull its controversial three-mile-radius car rental tax from the curb, after a state appellate panel determined the tax is a “use tax” assessed only on city residents using their rented vehicles in the city, and not an attempt to slap a transaction tax on vehicle rentals outside of city limits, which otherwise would have been an illegal extension of the city’s authority.