Illinois state officials have agreed to postpone the implementation of the Digital Asset Tax from January 1 to July 1, 2027. This decision follows a joint motion filed in the Sangamon County Circuit Court, which seeks a preliminary injunction to block the tax until the new effective date.
The legal action was initiated by The Digital Chamber and the Illinois Blockchain Association against state officials, including Revenue Director David Harris and Attorney General Kwame Raoul. While the parties have reached a stipulated agreement, the court must still formally approve the delay.
The tax, signed into law by Governor JB Pritzker in June, imposes a 0.2% levy on crypto transactions, including purchases and transfers. Lawmakers projected that the measure could generate up to $60 million in revenue during 2027. Industry groups continue to challenge the constitutionality of the law.
Critics argue the tax is overly broad, as it applies to transactions regardless of whether users realize financial gains. Additionally, the Blockchain Association and the Crypto Council for Innovation have filed a separate challenge, citing the high costs of building compliance systems without clear state guidance.
