Illinois Implements Digital Asset Tax on Crypto Transfers
- The Digital Asset Tax Act (DATA) imposes a 0.2% levy on crypto transfers starting January 1, 2027.
- The tax applies to digital asset brokers earning over $100,000 annually from Illinois users.
- Projected revenue from the tax is approximately $60 million per year.
- Critics, including the Crypto Council for Innovation and Illinois Blockchain Association, are calling for a repeal of the law before its implementation.
Illinois has introduced a new tax structure that impacts digital asset activities by taxing the gross value of transactions rather than profits. This approach has raised concerns among industry stakeholders who argue it disproportionately affects routine transactions without profit generation.
With the potential to raise $60 million annually, this tax could significantly impact brokers and retail users alike due to its broad application on transaction values rather than gains made. (Source)
