Chicago earns top sales tax distinction

Chicago -- Chicago earned a national distinction Tuesday by having the highest sales tax rate of any municipality in the country, observers said.

Cook County, which includes Chicago, bumped its sales tax rate from 0.75 percent to 1.75 percent to make up for a budget shortfall, the Chicago Tribune reported.

Because various municipalities in Illinois collect their own sales tax under authority known as "home-rule," starting Tuesday, Chicago shoppers will pay 10.25 percent sales tax.

Cook County is the only county in the state that is allowed home-rule privileges, the Chicago Sun-Times reported.

Calculating sales tax in the area might require a global positioning system: Shoppers spending $300 on taxable items in Chicago would be taxed $30.75; in nearby Oakland Park, the same purchases would be taxed $28.25 and in Libertyville, Ill., the same purchases would be taxed $19.50, the Tribune reported.

Copyright 2008 by United Press International.