Illinois agrees to six-month delay on 0.2% crypto tax pending court approval
Illinois state officials and crypto industry groups have filed a joint motion to delay the state's 0.2% digital asset tax from January 1 to July 1, 2027, awaiting court approval while legal challenges continue.
Illinois officials and cryptocurrency advocacy groups have agreed to seek a six-month postponement of the state's 0.2% Digital Asset Tax, moving its proposed start date from Jan. 1 to July 1, 2027. The agreed motion was filed on Oct. 1 in Sangamon County Circuit Court by plaintiffs The Digital Chamber and the Illinois Blockchain Association alongside Illinois Revenue Director David Harris and Attorney General Kwame Raoul.[1][4][5][7][8][9]
Enacted in June, the tax imposes a 0.2% levy on the value of digital assets involved in covered transactions rather than on trading profits. Crypto industry groups pushed back after the legislation passed, arguing the measure was rushed and warning of steep compliance costs. If granted by the court, the delay temporarily spares brokers from collecting the levy and defers fallback payment duties for customers, though the law remains in force and the state has not conceded unconstitutionality.[2][3][6][7]
The court had not been confirmed to have entered the order as of Oct. 4, according to reporting by CryptoSlate. Under the joint motion, both sides have asked to move the state's response deadline in the lawsuit to Nov. 13, while public comments on the Illinois Department of Revenue's draft rules remain open through Oct. 30.[6][7]
Key facts
- Illinois officials and crypto industry groups filed an agreed motion on Oct. 1 to delay the 0.2% Digital Asset Tax to July 1, 2027.
- The constitutional challenge against the levy was brought in Sangamon County by The Digital Chamber and the Illinois Blockchain Association against Revenue Director David Harris and Attorney General Kwame Raoul.
- The delay takes effect only if approved by the court, which had not confirmed entry of the order as of Oct. 4.
- The tax, enacted in June, assesses a 0.2% fee on covered digital asset transaction values rather than on trading profits.
- The joint filing does not repeal the law or concede that it is unconstitutional, leaving the statute in force while litigation continues.
- The parties requested extending the state's lawsuit response deadline to Nov. 13, while public comments on draft rules remain open through Oct. 30.
Sources · 9 sources
- CO
CoinGape@CoinGapeMediaPost on X ·
🚨 #Illinois Delays Crypto #Tax #Illinois officials and crypto industry groups agreed to seek a six-month delay of the 0.2% #crypto tax, moving its proposed effective date from January 1 to July 1, 2027, pending #court approval. 🔗 Know more in comments
Open source - WG
Watcher.Guru@WatcherGuruPost on X ·
JUST IN: 🇺🇸 Illinois postpones plans to tax crypto transactions regardless of profit or loss.
Open source - CT
Coin TelegraphArticle ·
Illinois will postpone implementation of crypto tax following lawsuit State officials agreed to delay the 0.2% crypto tax for six months after lawsuits and industry pushback claimed the bill was rushed through the legislature.
Open source - CO
CoinDesk@CoinDeskPost on X ·
BREAKING: Illinois agrees to postpone its 0.2% crypto tax by six months, with the Digital Chamber and Illinois Blockchain Association negotiating the delay while constitutional challenges work through the courts. @jesseahamilton reports. https://t.co/IbD5ZCxyEH
Open source - DE
DecryptArticle ·
Illinois Delays Controversial Crypto Tax Amid Industry Lawsuit Illinois officials and crypto groups jointly asked a state court to delay the 0.2% Digital Asset Tax from Jan. 1 to July 1, 2027, while a legal challenge continues.
Open source - CR
CryptoSlate@CryptoSlatePost on X ·
Illinois officials are asking to delay the 0.2% crypto tax from Jan. 1 to July 1, 2027. Court approval remains unconfirmed. The levy applies to covered asset value, not trading profits. https://t.co/OHLjnIBYqs
Open source - CR
CryptoSlateArticle ·
Illinois backs delay to crypto tax rule after months of industry pushback Illinois officials have joined crypto industry groups in seeking a six-month delay to the state’s controversial digital-asset tax . The agreed motion, filed Oct. 1 in Sangamon County, asks a judge to postpone the levy’s Jan. 1 start until July 1, 2027, while a constitutional challenge brought by The Digital Chamber and the Illinois Blockchain Association proceeds. Revenue Director David Harris and Attorney General Kwame Raoul joined the request even as the state continues to dispute the industry groups’ claims against the law. If granted, the injunction would temporarily spare brokers from collecting the tax and defer corresponding liabilities for covered customers. The court had not been confirmed to have entered the order as of Oct. 4. The move marks a shift in the immediate battle over a levy that crypto firms have spent months warning could raise compliance costs and push activity outside Illinois. The law remains in force, and the joint filing does not concede that it is unconstitutional or seek its repeal. Instead, both sides would preserve their legal positions while delaying collection as the lawsuit and the state’s rulemaking process continue. Illinois crypto tax burden moves back six months Illinois enacted the Digital Asset Tax in June, imposing a 0.2% levy on the value of digital assets involved in certain covered transactions rather than on investors’ trading profits. Draft rules from the Illinois Department of Revenue show how broadly that structure could reach. A fee-paid withdrawal from a broker to a self-custody wallet can qualify when the statutory conditions are met, while a direct transfer without a covered broker may fall outside the levy. Related Reading Everyday crypto users face monthly tax bills on total asset value if covered brokers fail to collect under new Illinois rules Brokers are responsible for collecting and remitting the tax and can remain liable when they fail to collect it. Customers face a separate fallback obligation: if the tax is not charged, they may have to calculate and pay the amount themselves by the 20th of the following month. Those obligations were due to begin in January despite the pending lawsuit. A court-approved delay would remove that immediate deadline for the first half of 2027, giving exchanges and other affected firms more time before they have to build collection and reporting procedures around the new regime. However, the pause would not necessarily halt all compliance work. Illinois’ draft rules remain under consultation, with public comments open through Oct. 30. The rules have not yet been filed with the Secretary of State or submitted to the Joint Committee on Administrative Rules, leaving key implementation details unsettled. The parties have also asked to move the state’s deadline for responding to the lawsuit to Nov. 13. That leaves crypto companies with two separate questions before year-end: whether the judge grants the agreed delay and how the Revenue Department changes its rules after receiving industry feedback. If the injunction is entered, firms would gain another six months before customers begin seeing the tax on covered transactions. The legal challenge would continue during that window, leaving open the possibility that companies could use the reprieve to prepare for a levy whose ultimate validity remains before the court. The post Illinois backs delay to crypto tax rule after months of industry pushback appeared first on CryptoSlate .
Open source - CO
CoindeskArticle ·
Illinois agrees to six-month delay of crypto tax as industry continues court battle Both sides agreed the 0.2% tax should be put off until July 1, if the court approves the deal, which will let the state and industry focus on the legal dispute.
Open source - TB
The Block@TheBlockCoPost on X ·
THE BLOCK: Illinois has agreed to a six-month delay of its controversial 0.2% crypto transaction tax while a legal challenge plays out. If approved by the court, the tax’s start date would move from Jan. 1 to July 1, 2027. https://t.co/uuAMl8cJUQ
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