| ILLINOIS SCHOOL SYSTEM AUDITIllinois Car Dealers, Sales Tax Rebates & Political MoneyBettenhausen · Zeigler · Rizza · CATPAC · Vates — The Complete Network |
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| 6,000Licensed IL vehicle dealers | ~$1BAnnual municipal auto sales tax revenue NE Illinois | $4.5MZeigler village incentive — 17 days after $5K Pekau donation | $3.2MKlein Thorpe legal fees since Pekau became mayor |
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866-312-6456 | auditor@illinoisschooldistrictaudit.com | IllinoisSchoolDistrictAudit.com | May 2026
WHY CAR DEALERS ARE THE MOST IMPORTANT POLITICAL DONORS IN ILLINOIS
| The Sales Tax Rebate Machine — How It WorksCar dealerships are the largest generators of municipal sales tax revenue in Illinois. A single new car dealership can generate $500,000–$3 million per year in state sales tax remitted to the municipality where it operates. Because Illinois law allows municipalities to rebate a portion of that sales tax back to retailers as economic development incentives, car dealers hold enormous leverage: they can threaten to move across a municipal border, taking millions in annual tax revenue with them. This creates a structural pay-to-play environment:
1. Dealer donates to mayor/trustees who control zoning and development agreements
2. Village approves economic incentive package — sales tax rebate, parking lot subsidies, infrastructure improvements, or direct cash grants
3. Dealer stays in (or expands within) the municipality
4. Tax revenue continues flowing to the village
5. Dealer donates again to keep the relationship warm
The CMAP Regional Tax Policy Task Force documented this in 2012 stating that 'municipalities have the capacity to rebate a portion of the sales tax back to the retailer as an inducement' and that auto dealerships 'typically provide a much larger net fiscal return for municipalities than offices and industrial.' In northeastern Illinois alone, municipalities received nearly $1 billion in sales tax disbursements in 2010. Car dealers, because a single sale can be taxed at $2,000–$5,000+, generate disproportionate shares of that revenue. |
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Illinois Auto Dealer Political Infrastructure
| Entity | Detail |
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| IADA | Illinois Automobile Dealers Association — 700 franchised dealer members, 2,000 franchises; founded 1920; headquartered across street from IL Secretary of State in Springfield; explicit legislative advocacy mission |
| CAR of Illinois | Committee of Automotive Retailers — IADA's state-wide PAC; funds candidates for IL House, Senate, Governor, Secretary of State, Attorney General; corporate checks accepted; no administrative fees |
| CATPAC | Chicago Auto Trade PAC; separate from IADA/CAR; historically linked to individual dealer groups including Eric Vates (Orland Park Mazda); donated heavily to Mike Madigan |
| NADA PAC | National Automobile Dealers Association PAC — federal level; Illinois dealers contribute to federal candidates |
| Individual dealer donations | Per ILSBE records: individual dealers and their family members donate directly to local candidates who control zoning, gaming, and development agreements in their municipality |
BETTENHAUSEN AUTOMOTIVE — THE SOUTHWEST SUBURBAN DYNASTY
| 60+ Years in the Heart of the NetworkBettenhausen Automotive is a family-owned dealership group that has operated in Orland Park and Tinley Park for over 60 years. These are the exact two municipalities at the center of the entire political network: Orland Park (Pekau), Tinley Park (Glotz, Vandenberg, Heidner casino project). The Bettenhausen family is the definition of what you are documenting — a multi-generational car dealer dynasty operating at the intersection of two politically active southwest suburban municipalities. They generate enormous sales tax revenue for both villages. Both villages have incentive to keep them happy. Both villages have incentive structures that reward donors. |
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Bettenhausen Automotive — Key Facts
| Item | Detail |
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| History | Family-owned 60+ years; 'One Price' CDJR dealer since 1992 |
| Orland Park location | 15941 S 94th Ave, Orland Park IL 60462 — Chrysler Dodge Jeep Ram FIAT + pre-owned megastore; claims 'Midwest's #1 Dealer' |
| Tinley Park location | 8355 W 159th St, Tinley Park IL 60477 — CDJR dealership; 30+ years at this location |
| Brands | Chrysler, Dodge, Jeep, Ram, FIAT, certified pre-owned of all makes |
| Geographic significance | Located on 159th St corridor — the same commercial spine that runs through Orland Park and Tinley Park; this is the highest-sales-tax-generating corridor in both municipalities |
| Municipal sales tax | A CDJR dealer of Bettenhausen's scale selling 1,500+ vehicles/year at average sale price $40,000 generates approximately $4.5M–$9M in gross annual sales subject to Illinois 6.25% state tax + local tax — generating $600K–$1.5M+ annually to each municipality |
| Political significance | Both Orland Park (Pekau 2017-2025) and Tinley Park (Glotz 2021-present) are in the middle of contested political environments where car dealer money is documented |
| WHAT TO INVESTIGATEFOIA both Orland Park and Tinley Park: (1) All economic development incentive agreements with Bettenhausen Automotive 2015-present; (2) All sales tax rebate agreements; (3) All zoning or development approvals affecting Bettenhausen properties; (4) Illinois Sunshine: all Bettenhausen family and company donations to local candidates in both municipalities; (5) Cross-reference any village contracts or infrastructure improvements (road work on 159th St, utilities, parking) that benefited Bettenhausen properties. |
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ZEIGLER AUTO GROUP — THE $5,000 DONATION AND THE $4.5 MILLION DEAL
| This Is the Clearest Documented Pay-to-Play in Orland ParkThe Zeigler/Pekau transaction is documented in public records and reported by Patch. On August 3, 2020, Zeigler Auto Group donated $5,000 to 'Keith for Mayor.' On September 8, 2020 — 36 days later — the Orland Park Board of Trustees approved a $4.5 million incentive package for Zeigler to expand its dealership. The deal joined Zeigler's existing property with village-owned land at 10920 W. 159th St for a parking lot expansion for repair vehicles and inventory. Trustee Jim Dodge said on the record: 'The people of Orland Park need to see what they think of him taking this money. Is it legal? Yes. Keith is prospering by Mike Madigan's rules.' |
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Zeigler Auto Group — Scale and Political Footprint
| Item | Detail |
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| Owner | Michael Zeigler; Kalamazoo, Michigan-based; one of the largest privately-owned dealer groups in the U.S. |
| Revenue | ~$2.2 billion in estimated annual vehicle sales |
| Scale | 88 franchises, 41 locations across Illinois, Indiana, Michigan, Wisconsin |
| Illinois locations | Orland Park BMW, Orland Park INFINITI, Orland Park Nissan, Schaumburg CDJR, Schaumburg Chevrolet, Downers Grove, Lincolnwood, North Riverside, Gurnee |
| Orland Park specifically | BMW at 11030 W 159th St Orland Park IL 60467; INFINITI at 8751 W 159th St; Nissan at 8550 W 159th St — three dealerships on the 159th St corridor |
| The donation | $5,000 to Keith for Mayor — August 3, 2020 |
| The deal | $4.5 million village incentive to expand parking and inventory storage — approved September 8, 2020 |
| Trustee Katsenes quote | 'One thing I found that was interesting was that Zeigler said 20 to 25 percent of their revenue was from Orland Park residents' — meaning 75-80% came from OUTSIDE Orland Park, making the municipality dependent on Zeigler for tax revenue it cannot easily replace |
| Key conflict | Pekau accepted $5,000 from Zeigler. Pekau controls the planning and development approval process. The full board voted yes — including Katsenes and Healy (later removed from electoral board for bias) |
RIZZA CARS / JOE RIZZA AUTO GROUP — ORLAND PARK'S OTHER DEALER DYNASTY
Profile
| Item | Detail |
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| Owner | Joe Rizza; Orland Park-based since 1978; 9 dealerships |
| Brands | Ford, Lincoln, Porsche, Acura, Buick, GMC, Cadillac, Maserati, Alfa Romeo |
| Primary address | 8100 W. 159th St, Orland Park IL 60467 — same 159th St corridor as Bettenhausen and Zeigler |
| CATPAC connection | Joe Rizza and Rizza Auto Group are Illinois automobile dealers; dealers are the primary contributors to CATPAC (Chicago Auto Trade PAC) which donated heavily to Mike Madigan; the dealer PAC network connects Madigan's Springfield machine to southwest suburban dealerships |
| Eric Vates connection | Eric Vates owns Orland Park Mazda; Vates funded CATPAC which donated to Madigan; Pekau was simultaneously pushing to appoint Vates to the Orland Fire Protection District board — documented in prior investigation |
| What to check | IL SOS: all Rizza Auto Group entity registrations; ILSBE: Rizza family and company donations to Pekau, Hastings, Morrison, Glotz |
ERIC VATES AND CATPAC — THE MADIGAN-PEKAU DEALER CONNECTION
| How a Conservative Republican Mayor Shared a Political Money Network with Mike MadiganThis is the most politically explosive connection in the Orland Park dealer story. Eric Vates owns Orland Park Mazda. Vates funded CATPAC (Chicago Auto Trade PAC). CATPAC donated heavily to Mike Madigan's Democratic machine. Pekau — the supposedly anti-Madigan Republican mayor — was simultaneously trying to appoint Vates to the Orland Fire Protection District board. This means: Pekau was appointing a man to a government board who was simultaneously funding the Democratic party boss Pekau publicly attacked. The money went both ways. The dealer money doesn't care about party — it cares about whoever controls the permits, licenses, zoning, and tax rebates. |
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| Item | Detail |
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| Eric Vates | Owner, Orland Park Mazda |
| CATPAC | Chicago Auto Trade PAC — statewide auto dealer PAC separate from IADA's CAR |
| Madigan connection | CATPAC donated to Madigan's Democratic machine; Vates was a CATPAC funder |
| Pekau connection | Pekau pushed to appoint Vates to Orland Fire Protection District board |
| The irony | Pekau ran his entire political career attacking Madigan and machine Democrats; he was simultaneously appointing a Madigan-funded dealer to a government board |
| Orland Fire Protection District | Separate taxing body with its own bonding authority, budget, and contracts; appointing a donor to this board gives the donor influence over millions in district contracts |
THE STATEWIDE CAR DEALER SALES TAX REBATE NETWORK
| The Biggest Undisclosed Subsidy in Illinois GovernmentIllinois law allows municipalities to rebate a portion of state sales tax back to retailers. For car dealers, this can represent $200,000–$1 million+ per year in payments from the municipality back to the dealer. These are NOT disclosed in most municipal budgets as 'subsidies to car dealers' — they appear as 'economic development expenditures' or 'sales tax sharing agreements.' CMAP identified this as a priority transparency issue in 2012. Proposed legislation (HB 3859) to require disclosure was amended to ALLOW municipalities to REDACT the actual amounts. The result: hundreds of millions in annual dealer subsidies are functionally invisible to taxpayers. The connection to political donations is direct and documented — but almost entirely untracked. |
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How to Map the Full Statewide Network
| Data Source | What to Pull |
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| IL Dept of Revenue | All sales tax sharing/rebate agreements between municipalities and retailers — FOIA under 35 ILCS 120/11 (now required to be disclosed) |
| Every municipality with major dealerships | FOIA: All economic development incentive agreements with auto dealers 2010-present; all sales tax rebate agreements |
| ILSBE Campaign Finance | All donations from auto dealers, dealer families, dealer employees, CATPAC, CAR of Illinois, NADA PAC to every local candidate in municipalities where they operate |
| IL SOS Corporate Database | All auto dealer entities — map corporate structure to identify family members who donate individually |
| IGB/municipal ordinances | Cross-reference: any dealer who donated to a mayor who also controls gaming licenses |
Key Municipalities to Target — Highest Car Dealer Sales Tax Revenue
| Municipality | Major Dealers | Why It Matters |
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| Orland Park | Rizza (9 stores), Zeigler (BMW/INFINITI/Nissan), Bettenhausen CDJR/FIAT | Pekau documented pay-to-play; Zeigler $5K → $4.5M deal; Vates/CATPAC/Madigan connection |
| Tinley Park | Bettenhausen CDJR, Apple Chevrolet (IADA chairman's dealership) | Glotz controls gaming and development; Heidner casino project; Local 150 connections |
| Oak Lawn | Multiple dealers on Cicero Ave corridor | Cook County politics; high sales tax corridor |
| Joliet/Will County | Multiple large volume dealers | Will County is fastest-growing county; new development; massive sales tax stakes |
| Matteson/Richton Park/Homewood | Southland area dealers | SE Cook County; multiple municipalities competing for same dealer footprint |
| Schaumburg | Zeigler CDJR and Chevy; multiple luxury brands | DuPage border; highest per-capita sales tax generators in NW suburbs |
| Peoria | Major downstate dealer corridor | Home of IADA founding; strong dealer political influence in downstate races |
THE COMPLETE UIHLEIN-IVES-PEKAU CONNECTION — FULLY MAPPED
| How Schlitz Beer Money Ended Up in Orland Park PoliticsAugust Uihlein co-founded Schlitz Brewing in 1875. His great-grandson Richard Uihlein built Uline into an $11 billion shipping supply company. Richard donated $2.5 million to Jeanne Ives in 2018 — making her competitive in the Republican primary against Rauner. Ives lost but remained the ideological leader of the conservative GOP wing in Illinois. Ives endorsed Keith Pekau for Congress in 2022. Pekau ran on the same platform Ives championed — anti-tax, anti-spending, pro-business, anti-Madigan. Uihlein also donated $100,000 to the Coalition to Stop the Tax Hike which transferred $450,540 to a shell entity that gave $300,000 to Sean Morrison — Pekau's ally who endorsed him for Congress and made robocalls for him in 2025. The Schlitz money runs from 1875 Milwaukee to 2022 Morrison campaign in a traceable line. |
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| Year | Actor | Action | Amount/Connection |
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| 1875 | August Uihlein | Co-founds Schlitz Brewing | Dynasty wealth created |
| 1945 | Richard Uihlein born | Schlitz heir | Great-grandson of August |
| 1980 | Richard & Liz Uihlein | Found Uline from basement, Lake Forest | $11B/year today |
| 2014 | Richard Uihlein | Donates to Bruce Rauner governor | $2.6 million |
| 2017 | Rauner signs Medicaid abortion bill | Uihlein breaks with Rauner | Begins funding far-right challengers |
| Jan 2018 | Richard Uihlein | Donates to Jeanne Ives primary challenge | $2.5 million — 67%+ of her total |
| Jan 2018 | Richard Uihlein | Donates to Dan Proft Liberty Principles PAC | $3 million simultaneously |
| 2020 | Richard Uihlein | Donates to Coalition to Stop Tax Hike | $100,000 |
| 2021 | Coalition to Stop Tax Hike | Transfers to Coalition to Cut Taxes (shell) | $450,540 — Uihlein's $100K was in this pool |
| 2022 | Jeanne Ives | Endorses Pekau for Congress (IL-6) | Direct political blessing |
| 2022 | Coalition to Cut Taxes | Transfers to Sean Morrison campaign | $300,000 — illegal under 9-8.5(j) |
| 2022 | Morrison wins by 2.58% | Pekau gets political ally on County Board | All positions preserved |
| 2025 | Morrison makes robocalls for Pekau | Pekau loses 15 points anyway | Alliance collapses |
Illinois School System Audit | 866-312-6456 | auditor@illinoisschooldistrictaudit.com | May 2026