Illinois Crypto Tax Delay Sought by Industry Groups
Crypto industry trade groups are pushing to stop Illinois' upcoming 0.2% tax on cryptocurrency transactions, arguing it's unconstitutional and would force companies to incur substantial compliance costs.
The Crypto Council for Innovation (CCI) and the Blockchain Association (BA) filed a motion for a preliminary injunction in the Circuit Court of Sangamon County, Illinois, seeking to block enforcement ahead of the tax's planned start in January 2027.
The groups argue that the compliance burden and related operational disruption would amount to 'irreparable harm,' which is a standard courts often require before issuing emergency relief. This means companies are being pressured to build systems for a tax they claim violates constitutional rights, under the threat of criminal penalties, diverting employees and other resources from other priorities.
The tax was enacted as a 'privilege tax' in June, placing it in the state's fiscal year 2027 budget. The timing is at the center of the legal and practical dispute: the tax is set to take effect on Jan. 1, 2027, compelling immediate spending even though the law is still contested in court.