Illinois Enacts Controversial Tax on Cryptocurrency Transactions
- A new tax law in Illinois imposes a 0.2% tax on businesses involved in crypto transactions or storage.
- The tax applies to firms with gross receipts of at least $100,000, affecting both local and out-of-state providers.
- Expected revenue from this tax is around $60 million for the state budget.
- Governor J.B. Pritzker approved the provision as part of a broader budget bill totaling approximately $56 billion.
- The legislation also includes new taxes on fantasy sports and social media activities.
The Illinois tax law defines digital asset business activity broadly, encompassing any exchange, transfer, or storage of digital assets for customers. This last-minute addition to the budget has drawn significant backlash from the crypto industry, which argues it could hinder growth.
With an anticipated revenue of $60 million, this new tax reflects a growing trend of state-level taxation on digital assets, raising concerns among stakeholders about its long-term implications for the market.
