Lowe’s Liable in Illinois Sales Tax Fraud Action

The home improvement chain Lowe’s could be on the hook for millions of dollars in unpaid Illinois sales taxes and penalties under a court order that holds the retailer isn’t entitled to a tax benefit generally reserved for building contractors.

Cook County Circuit Court Judge James Snyder ruled Lowe’s engaged in a “material violation of the law” in avoiding taxes by portraying itself as a contractor when it sold and installed dishwashers and microwave ovens in the homes of Illinois customers.

Lowe’s Cos Inc. must be characterized as a retailer with a higher burden under the sales tax code, ...