Trade Groups Challenge Illinois’ Upcoming Crypto Transaction Tax
- The Crypto Council for Innovation (CCI) and Blockchain Association filed a motion to block a proposed 0.2% tax on cryptocurrency transactions in Illinois, set to take effect January 2027.
- The CCI claims the tax violates constitutional rights and imposes significant costs on digital asset firms without clear guidelines on its application.
- Illinois Governor JB Pritzker signed the tax into law as part of the fiscal year budget for FY2027, marking Illinois as the first state to specifically target crypto transactions.
- Another trade group, the Digital Chamber, has also initiated legal action against this tax measure.
- The lawsuit argues that the tax contravenes both federal and state due process laws and could lead to criminal penalties for non-compliance.
The legal actions aim to prevent irreparable harm to digital asset companies facing substantial costs in preparation for a tax they deem unlawful. The outcome could influence similar legislative efforts in other states.
As Illinois prepares for this unique taxation approach, trade groups are advocating against it, citing potential violations of rights and significant financial burdens on companies involved in cryptocurrency transactions.(Source)
