Overview
- Governor J.B. Pritzker signed the fiscal 2027 budget that includes the Digital Asset Privilege Tax, which charges 0.2% on any exchanged, transferred, or stored digital asset for Illinois customers.
- The tax takes effect on January 1, 2027, and requires brokers to register with the Illinois Department of Revenue, collect the fee as a separate line item, keep records, and file monthly reports.
- Out-of-state firms with at least $100,000 in annual receipts from Illinois customers can be liable under broad sourcing rules that use account data, mailing address, IP or place of primary use to locate transactions.
- Industry groups and leaders including the Crypto Council for Innovation, Coinbase CEO Brian Armstrong, Miles Jennings of a16z and Michael Saylor sharply criticized the law and are discussing legal challenges or other responses.
- State budget estimates put revenue at roughly $60 million a year and the law could prompt firms to restrict service for Illinois users, create operational strain on platforms, or push calls for a federal standard to avoid a patchwork of state rules.