Illinois’s 0.2% Crypto Tax Slips to 1 July 2027…
By Abdelaziz Fathi
AI summary of the source article
Illinois and two crypto industry groups, the Digital Chamber and Illinois Blockchain Association, have asked a Sangamon County judge to delay the state’s 0.2% Digital Asset Tax from January 1 to July 1, 2027. The agreed motion offers temporary relief from compliance requirements while the industry challenges the law's constitutionality and enforceability in court. The Digital Asset Tax Act broadly levies a 0.2% charge on exchange, transfer, and custody services received by Illinois customers, placing collection duties on brokers. If approved by the court, the six-month postponement gives platforms additional time to build tracking systems while litigation continues.
Why it matters
The delay temporarily pauses costly compliance requirements for crypto platforms and defers a 0.2% charge on digital asset services for Illinois users while the court evaluates the law's legality.
Key facts
- Illinois and crypto industry groups filed an agreed motion to push the 0.2% Digital Asset Tax start date to July 1, 2027, pending court approval.
- The tax applies to digital asset exchanges, transfers, and custody services received by Illinois customers, with brokers responsible for collection.
- Plaintiffs contend the statute violates both the U.S. and Illinois constitutions and is preempted by the federal Internet Tax Freedom Act.