Illinois Postpones Digital Asset Tax Until July 2027
The Illinois state government has agreed to delay the implementation of its 0.2% tax on digital assets. The tax was set to take effect on January 1, 2027, but due to a court challenge, the effective date has been pushed back to July 1, 2027. The Digital Chamber, a crypto advocacy group, had sued the Illinois Attorney General and Department of Revenue official, arguing that the tax was inserted into the state budget without adequate debate or public input.
The delay is seen as a positive development for the crypto industry, but Digital Chamber CEO Cody Carbone emphasized that the organization will continue fighting the tax in court. He stated that the postponement does not equal repeal, and the group plans to continue seeking to have the tax struck down. The tax was included in Illinois' fiscal year 2027 budget legislation signed by Governor JB Pritzker in June.
The Digital Chamber's lawsuit is not the only legal pressure brought against Illinois' digital asset tax. Separate actions were taken by the Crypto Council for Innovation and the Blockchain Association, which argued against the tax on constitutional grounds and sought to block its January 1 implementation with a preliminary injunction.