Illinois Transaction Tax Halted Amid Constitutional Concerns
Crypto Trade Groups Push Back Against Illinois' Upcoming 0.2% Transaction Tax
The Crypto Council for Innovation (CCI) and the Blockchain Association (BA) have filed a motion with the Circuit Court of Sangamon County, Illinois, to block enforcement of the state's planned 0.2% digital asset transaction tax before its January 1, 2027 start date.
The groups argue that the tax violates constitutional protections and due process rules, and that companies face irreparable harm from near-term compliance spending. According to CCI CEO Ji Hun Kim, firms are being asked to invest 'millions' in new systems while the dispute over legality remains unresolved.
The tax is structured as a 'privilege tax' tied to transaction volume rather than income. The groups contend that Illinois has not provided adequate clarity on what exactly is taxed and when, while companies are already being forced to build compliance systems under the threat of criminal penalties.