Illinois agrees to delay 0.2% digital asset tax by six months

Illinois officials agreed to delay implementation of a 0.2% digital asset tax by six months, according to a Thursday filing by the Digital Chamber in the circuit court of Sangamon County. The tax's effective date will move from January 1 to July 1, 2027. The filing says the delay will allow the parties to address the underlying legal questions without prejudicing their rights, claims or defenses. The tax was included in a senate bill that formed part of Illinois's fiscal year 2027 budget. Governor JB Pritzker signed the bill into law in June. Under the legislation, crypto brokers would have been required to impose the 0.2% tax starting January 1 or face potential prison time and fines. The Digital Chamber sued Illinois Attorney General Kwame Raoul and Department of Revenue official David Harris in July. The group claimed the tax was added to the state budget without debate or public feedback. Digital Chamber CEO Cody Carbone called the delay a major win for the crypto industry. However, Carbone said the group would continue seeking to overturn the tax in court because a delay is not a repeal. The Crypto Council for Innovation and the Blockchain Association brought separate legal actions against the tax in August. The two trade associations challenged the tax on constitutional grounds and later sought a preliminary injunction to block its January 1 implementation. The status of their legal challenge was unclear as of Thursday following the delay agreement. Neither organization immediately responded to a request for comment.