Overview
- The Blockchain Association and the Crypto Council for Innovation filed suit in Sangamon County on Friday to block Illinois’s Digital Asset Tax Act, which takes effect Jan. 1, 2027.
- The statute imposes a 0.2% levy on the value of covered digital‑asset activity and makes brokers the primary collectors once they meet a $100,000 rolling threshold in receipts from Illinois customers.
- Plaintiffs allege seven legal claims including preemption under the federal Internet Tax Freedom Act, violations of the Dormant Commerce Clause, federal and state due‑process defects, and breaches of Illinois constitutional rules on taxation and legislative process.
- If a broker does not collect the tax, the law requires Illinois customers to remit the amount by the 20th day of the next month, which industry groups say could create recurring cash‑flow burdens for everyday users.
- The filing did not suspend the law and, unless a court grants injunctive relief or the legislature repeals the measure, companies must continue preparing to comply with the January 1, 2027 start date.