Key Highlights:
- Illinois may delay its 0.2% crypto tax for six months, potentially pushing back its January 1 start date.
- The Digital Chamber and Illinois Blockchain Association negotiated the delay with Illinois officials.
- The agreement still requires approval from a Sangamon County circuit court judge.
Illinois Crypto Tax Could Be Delayed by Six Months
Illinois may postpone the launch of its new cryptocurrency tax after industry groups reached an agreement with state officials to delay implementation by six months. The tax, which could otherwise begin on January 1, still requires approval from a judge before the postponement takes effect.
The Digital Chamber and Illinois Blockchain Association negotiated the agreement with Illinois officials, the Digital Chamber told CoinDesk. The delay could ease immediate pressure on crypto businesses and industry advocates, who continue to oppose the tax and seek to prevent it from taking effect.
What the Illinois Digital Asset Tax Covers
Illinois approved the 0.2% tax in June as part of the state’s Digital Asset Tax Act. The levy applies to crypto-related activity involving firms that exceed $100,000 in receipts. Covered activities include all transaction activity as well as accepting digital assets for storage.
The proposed postponement would not resolve the underlying dispute over the tax. Instead, it would give the parties additional time while the legal challenge proceeds through the state court system.
Court Filing Expected in Sangamon County
The joint request for the six-month delay is expected to be filed Thursday morning in the state circuit court in Sangamon County. If the judge approves the request, the parties could avoid immediately disputing legal injunctions and instead concentrate on the next phase of the case.
That phase will address the “disputed issues of law regarding the constitutionality and enforceability” of Illinois’ Digital Asset Tax Act. The court’s decision on the requested delay will determine whether the tax’s implementation is temporarily postponed while those legal questions are considered.
Why This Matters
The agreement provides Illinois crypto businesses with additional time before facing the new tax, but it does not indicate that the levy has been withdrawn. The tax remains the subject of a broader legal dispute involving its constitutionality and enforceability, while crypto industry groups continue efforts to stop the measure.
Frequently Asked Questions
When was the Illinois crypto tax expected to begin?
The tax may have started on January 1, but the proposed agreement could postpone implementation for six months if approved by a judge.
What is the rate of the Illinois crypto tax?
Illinois approved a 0.2% tax on crypto activity involving firms that exceed $100,000 in receipts.
What happens next?
The Digital Chamber and Illinois Blockchain Association are expected to file a joint request for the delay in Sangamon County circuit court. A judge must approve the request before it takes effect.
