The cryptocurrency sector is voicing its concerns regarding a recent tax regulation in Illinois, which imposes a 0.2% levy on businesses that either conduct transactions or store crypto on behalf of clients within the state. Nevertheless, it might be too late for any immediate changes to be made.
As outlined in the legislation, the tax applies to “receiving any digital asset business activity,” categorizing such activities as “any individual instance of exchanging, transferring, or storing a digital asset for business purposes or for a customer.”
This tax will impact companies headquartered in Illinois or those serving state residents with annual gross revenues exceeding $100,000. An insider has indicated that the new tax is projected to generate approximately $60 million.
According to two sources familiar with the situation, this tax provision was included at the last moment in Illinois’ comprehensive budget legislation and received the green light from Governor J.B. Pritzker on June 16, as noted in the bill’s status page. The new law establishes a budget of about $56 billion for the fiscal year 2027 and encompasses additional taxes on fantasy sports, social media, and more, as reported by ABC 7.