Cryptocurrency and blockchain advocacy organization The Digital Chamber is suing the State of Illinois over the state’s 0.2% tax on crypto transactions expected to go into effect in 2027. In
Cryptocurrency and blockchain advocacy organization The Digital Chamber is suing the State of Illinois over the state’s 0.2% tax on crypto transactions expected to go into effect in 2027.
In a Tuesday filing in the circuit court of Sangamon County, Illinois, the Chamber alleged that the Illinois state tax for the 2027 fiscal year was “facially invalid.” The organization filed a civil suit against Illinois Attorney General Kwame Raoul and the Department of Revenue’s David Harris, claiming that the crypto tax was “slipped into the state’s budget” without a debate or feedback from people potentially affected.
“The lawsuit argues that no one should be taxed differently because of how ownership is recorded or transferred,” said the chamber in a Tuesday blog post. “Put simply, this tax discriminates against people who transact in digital assets. This tax is universally applied, regardless of whether the investor realizes any gain, or whether ownership is even being transferred.”
The digital asset policy, included in a senate bill as part of the Illinois state budget for the fiscal year 2027, requires crypto brokers to impose a 0.2% tax or face potential prison time and fines. Governor JB Pritzker signed the budget bill into law in June.
