Illinois agrees to six-month delay of crypto tax as industry continues court battle
- The new 0.2% Illinois crypto tax that’s worried the industry is expected to be postponed six months to July 1, assuming a judge approves the agreement between state officials and crypto industry representatives.
- The Digital Chamber and Illinois Blockchain Association negotiated a delay to allow the legal arguments to be conducted in court without the tax looming so closely.
The surprise crypto tax sprung by Illinois earlier this year may not start on January 1 after Illinois agreed to postpone it for six months, according to the industry groups that negotiated the delay, which will still need sign-off from a judge.
The Digital Chamber and Illinois Blockchain Association reached that accord with state officials, the Chamber told CoinDesk, and it could take some of the pressure off the looming tax as crypto interests continue trying to kill the idea. In June, Illinois' government had approved the 0.2% tax on crypto activity involving firms who exceed $100,000 in receipts — including all transaction activities and accepting assets for storage.
The joint request for a delay is expected to be filed Thursday morning in the state circuit court in Sangamon County. If approved, the sides can skip haggling over legal injunctions and focus on the next stage in the court dispute, the "disputed issues of law regarding the constitutionality and enforceability" of the state's Digital Asset Tax Act.