The Illinois Supreme Court has ruled in favor of Rolling Meadows in a dispute with Arlington Heights over misallocated sales tax revenue from Cooper’s Hawk Winery & Restaurant. The court determined that only the Illinois Department of Revenue has jurisdiction over such disputes, leading to the dismissal of Arlington Heights’ lawsuit.
The issue arose when Cooper’s Hawk, located in Arlington Heights, was mistakenly coded under Rolling Meadows, causing the latter to receive over $1 million in tax revenue between 2011 and 2020. Arlington Heights discovered the error in 2020 but was only able to recover $109,000—the legal maximum covering the last six months of 2019.
Despite arguments of unfair enrichment, the court emphasized that both municipalities had opportunities to catch the mistake through regular tax reports. The decision reinforces the importance of diligent tax record monitoring to prevent similar cases in the future.
Rolling Meadows officials welcomed the ruling as a clarification of tax law, while Arlington Heights leaders expressed disappointment, warning that the outcome sets a concerning precedent for other municipalities.
