CHICAGO (AP) — The Illinois Supreme Court says Chicago can’t force companies to slap a tax on residents who rent cars in the suburbs.
The court says there could be “serious problems” if other cities had the same policy.
Chicago levied a 9 percent tax at car rental companies within 3 miles of the city limits. The Chicago Tribune says the city assumed that a Chicago resident was using the rental car more than half the time in the city.
Enterprise and Hertz filed a lawsuit. A Cook County judge struck down the tax, but an appellate court reversed the decision. The state Supreme Court overturned that ruling Friday.
Chicago defended the tax, saying residents who rent cars nearby should pay a tax for city services.
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