Illinois Delays 0.2% Crypto Tax Until July 1, 2027, Pending Judge Approval

The state of Illinois has agreed to delay the implementation of a 0.2% tax on cryptocurrency transactions until July 1, 2027, pending a judge's approval. The Digital Chamber and the Illinois Blockchain Association negotiated the delay with state officials, allowing the state and industry to focus on a legal dispute over the Digital Asset Tax Act.

The tax, which was signed into law by Governor JB Pritzker in June, would require cryptocurrency brokers to impose a 0.2% levy on transactions or face potential prison time and fines. However, the Digital Chamber argued that the provision was introduced without sufficient debate or public input, and the parties said pushing the start date back would allow the court to hear and decide key legal issues without disadvantaging their rights, claims, or defenses.

The Digital Chamber framed the pause as relief from compliance obligations while it continued to seek to have the tax permanently repealed through the courts. The organization's CEO, Cody Carbone, stated that the delay gives businesses and users 'relief from costly compliance obligations' while the organization continues to seek to overturn the tax in court.