Crypto industry aghast at Illinois' new tax on holding or transferring digital assets in state budget
Key takeaways
- Pritzker (Jeff Schear/Getty Images for the James Beard Foundation)Summary Show Illinois Governor J.B.
- The tax applies to firms that are based in Illinois or provide services to residents of the state with total gross receipts of at least $100,000.
- The provision was added last-minute to Illinois' broader budget bill, according to two people following the matter, and was approved by Governor J.B.
Pritzker (Jeff Schear/Getty Images for the James Beard Foundation)Summary Show Illinois Governor J.B. Pritzker approved the legislature's $56 billion budget, which includes a new 0.2% tax on digital asset business activity.Any business exchanging, storing or transferring digital assets for Illinois residents will be responsible for reporting this tax, according to the legislation.The tax was added last-minute, two people familiar with the situation said, and the legislature is now out of session for the year.The crypto industry is pushing back against a new tax law in the state of Illinois that enacts a 0.2% tax on businesses transacting or storing crypto for customers in the state, but it may be too late to change it in the short-term.
The law enacts a 0.2% tax on "receiving any digital asset business activity," according to the text of the bill, which defined digital asset business activity as "any single occurrence of exchanging, transferring or storing a digital asset as part of a business or on behalf of a customer."
The tax applies to firms that are based in Illinois or provide services to residents of the state with total gross receipts of at least $100,000. The tax is expected to raise around $60 million, said a person following the process.