The Digital Chamber sued the Illinois Department of Revenue on Tuesday, asking a Sangamon County court to strike down the state’s new Digital Asset Tax Act before it takes effect.
The trade group represents more than 250 blockchain companies. It says the 0.2% tax unfairly singles out digital assets based on the technology used to record ownership.
Within Illinois’ Digital Asset Tax Act
Illinois enacted the Digital Asset Tax Act as Section 3 of Public Act 104-0468. The measure imposes a 0.2% tax on the exchange, transfer, or storage of a customer’s digital assets.
Brokers must also register with the Department of Revenue. Violations of Illinois law are classified as Class 3 felonies. The tax goes into effect on January 1, 2027.
Governor JB Pritzker signed it Senate Bill 3019 becomes law in June. It caused a lot of frustration from the crypto industry at the time, and the courts are now involved.
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Illinois Crypto Tax Faces Legal Trouble Months Before Implementation
The Digital Chamber’s a case raises six claims under state and federal law. It states that the tax applies to the same property differently depending on how the ownership is recorded.
“In short, these taxes discriminate against digital users,” the group said.
A tokenized Treasury and a book-entry Treasury have the same rights, the suit says. However, it is only the blockchain version that is subject to taxation. Writing compare setup with taxes on one email but not the other.
The group also warns that the definition may stretch far beyond crypto. It says that future tax systems could reach AI-powered automated systems and cloud-based payment networks.
“Taxes should be considered carefully, not only for the sake of income but also for the fairness of the people who are taxed. That was not the case here, because the law entered the law the night before it was finally considered,” CEO Cody Carbone. he said.
The suit asks court announcement of Do the nonsense and stop the pressure. The repeal bill, House Bill 5798, is still pending in the legislature.
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A note Digital Chamber Builds Illinois On 0.2% Crypto Tax Law appeared for the first time BeInCrypto.
