The Kankakee City Council has approved a lawsuit settlement with the Illinois Department of Revenue that brings back about $1-MILLION dollars. Minus monies owed to taxpayers, the city will add about $250,000 into the local checkbook.

This case dates back to 2011 when Kankakee filed suit against the Department of Revenue over sales tax revenue the city had gained but the state said belonged to it. State officials said the sales tax revenue belonged to the state and not the municipalities where businesses had set up sales tax offices.

Kankakee legal advisor Chris Bohlen said the city filed an injunction over a court order that would have re-allotted already-distributed sales tax money to Kankakee. That would have been retroactive several years, costing the city millions of dollars.

The dispute was settled with Kankakee gaining about a quarter-of-a-million dollars that will be refunded to its reserve fund.

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