Lawsuit Filed Against Airline, City of Sycamore

Jan 14, 2013

UPDATE: The city of Sycamore issued a news release Monday afternoon saying the city will defend its position. It says the agreement has been reviewed by tax authorities in the past and determined to comply with state law.

The Regional Transportation Authority has filed a lawsuit against United Airlines and the city of Sycamore alleging that United Aviation Fuels is operating a "sham" office.

Credit city of Sycamore

CHICAGO SUN-TIMES: Lawsuit: ‘Sham’ United office dodges sales taxes

The RTA says United Airlines falsely claimed to buy jet fuel out of an office in Sycamore to avoid paying taxes in Chicago.  According to published reports, United officials deny any wrongdoing.

CRAIN'S: RTA accuses United, American airlines of fuel-tax dodge

Credit Google Maps

The RTA filed suit against Chicago-based United, while deferring formal action against American, as American is currently involved in bankruptcy proceedings.

The RTA issued a news release which includes the following:

Both airlines purchase and use millions of gallons of jet fuel in Chicago. Despite this, since 2001, United has claimed to "accept" jet fuel at its office in a Sycamore strip mall, while American has been "accepting" jet fuel at its small, windowless office inside Sycamore’s town hall since 2004.

The lawsuit, filed in the Circuit Court of Cook County, comes roughly 18 months after the RTA filed similar lawsuits against far south suburban municipalities Kankakee and Channahon.