Schain Banks successfully challenged a tax assessment brought by the Cook County Department of Revenue against a fuel company for allegedly unpaid gasoline and diesel taxes.  On March 22, 2024, the Illinois Appellate Court, First District, affirmed a judgment by the Circuit Court of Cook County in a case under Section 74-471 of the Cook County Retail Sale of Gasoline and Diesel Fuel Tax Ordinance, Cook County Code of Ordinances § 74-470 et seq. (“Fuel Tax Ordinance”).  

The Appellate Court analyzed the Fuel Tax Ordinance, specifically which entities are considered “retail dealer[s]” who must remit fuel taxes—an issue of first impression.  The Appellate Court held that it was against the manifest weight of the evidence for the administrative law judge to conclude that a gasoline distributor’s affiliate that delivered fuel to stores in Cook County owned by the distributor was a retail dealer under the Fuel Tax Ordinance.  Accordingly, no additional fuel taxes are owed on the majority of stores assessed under the County’s audit.

The taxpayer was represented by attorneys Thomas J.K. Schick, Michelle L. Wesley, and Kevin J. Wolfberg.  Thomas J.K. Schick argued the case before the Illinois Appellate Court.  The decision is Buchanan Energy (N) LLC v. Cnty. of Cook, 2024 IL App (1st) 220056.