Newsletter
- According to a joint motion submitted to Sangamon County Circuit Court, Illinois has agreed to postpone the implementation of a 0.2% tax on crypto transactions for six months, until July 1, 2027.
- This extension stems from lawsuits filed by the Digital Chamber of Commerce ( The Digital Chamber ) and the Illinois Blockchain Association, with both organizations still challenging the constitutionality of this tax.
- The court still needs to approve this motion. Meanwhile, the challenges filed separately by the Blockchain Association and the Crypto Innovation Committee continue.
If the judge signs off on it, encrypted users in Illinois will be given a six-month grace period.
According to a joint motion submitted to Sangamon County Circuit Court on Thursday, state government officials have agreed to postpone the effective date of Illinois' "digital asset tax" from January 1, 2027, to July 1, 2027. The document requests the court to issue a preliminary injunction against this tax, that is, to temporarily stop its implementation and suspend its effective date until July.
This motion originated from a lawsuit filed by the Digital Chamber of Commerce (officially known as Chamber of Digital Commerce, that is, The Digital Chamber) and the Illinois Blockchain Association against the Director of the Illinois State Tax Bureau, David Harris, and the State Attorney General, Kwame Raoul.
Since this is a motion agreed upon by both parties, namely “stipulated”, both parties in the lawsuit are requesting the judge to reach the same outcome, but it still requires the approval of the court.
The Digital Chamber announced this arrangement on Platform X and attributed it to the legal team of Bellementis PLLC. This extension does not mean that the case has been resolved; these industry groups are still challenging whether this tax is constitutional and whether it is enforceable.
Illinois Governor JB Pritzker signed the "Digital Assets Tax Act" in June as part of the state's 2027 fiscal year budget. The law imposes a 0.2% tax on crypto activities within the state, including purchases and transfers, and is collected on behalf of the state by digital asset brokers (such as large exchanges). The Crypto Innovation Commission (Crypto Council for Innovation) has described it as the "most punitive digital assets tax" in the United States. Legislators estimate that this tax could generate up to $60 million in revenue in 2027.
Critics mainly question that the scope of application for this taxation is too broad. The Digital Chamber believes that this tax will be imposed on users, regardless of whether they have actually generated any revenue.
The Blockchain Association ( Blockchain Association ) and the Crypto Innovation Committee are also advancing their respective legal challenges. On September 9th, both organizations requested the same court to stop the implementation of this tax, stating that companies have spent millions of dollars building compliance systems without meaningful guidance from state governments.
Meanwhile, in Washington, the House Ways and Means Committee of the United States advanced the Digital Assets Tax Certainty Act last month. Among other adjustments, the act will eliminate the requirement to calculate profits and losses for online fees that meet certain criteria and are $10 or less starting from 2028.
