⚖️ Crypto Industry Escalates Legal Fight Against Illinois Digital Asset Tax
The legal pressure on Illinois' new crypto tax is mounting. Two more crypto trade associations filed a lawsuit Friday in Sangamon County, joining an earlier suit filed last month by another industry group.
What's being challenged:
Illinois' law imposes a 0.2% tax on businesses that transact or store crypto for customers in the state , applying to firms based in Illinois or serving residents with total receipts over $100,000. The suit argues the tax violates the U.S. Constitution, Illinois Constitution, and the Internet Tax Freedom Act.
Industry pushback:
Critics argue the tax singles out digital assets for uniquely punitive treatment based on the underlying technology rather than the substance of the transaction , essentially picking winners and losers through the tax code, since there's no equivalent tax on traditional assets.
Industry advocates also warn the tax discriminates against digital commerce, creates uncertainty for consumers and businesses, and threatens to fragment a rapidly growing national market.
Key concern: The tax is transaction-based, meaning it applies even if the taxpayer lost money on their crypto activity , not tied to actual profit.
Fiscal impact: The tax is estimated to raise roughly $60 million for Illinois' state budget.
#dyor #NFA✅
The legal pressure on Illinois' new crypto tax is mounting. Two more crypto trade associations filed a lawsuit Friday in Sangamon County, joining an earlier suit filed last month by another industry group.
What's being challenged:
Illinois' law imposes a 0.2% tax on businesses that transact or store crypto for customers in the state , applying to firms based in Illinois or serving residents with total receipts over $100,000. The suit argues the tax violates the U.S. Constitution, Illinois Constitution, and the Internet Tax Freedom Act.
Industry pushback:
Critics argue the tax singles out digital assets for uniquely punitive treatment based on the underlying technology rather than the substance of the transaction , essentially picking winners and losers through the tax code, since there's no equivalent tax on traditional assets.
Industry advocates also warn the tax discriminates against digital commerce, creates uncertainty for consumers and businesses, and threatens to fragment a rapidly growing national market.
Key concern: The tax is transaction-based, meaning it applies even if the taxpayer lost money on their crypto activity , not tied to actual profit.
Fiscal impact: The tax is estimated to raise roughly $60 million for Illinois' state budget.
#dyor #NFA✅
