Crypto group sues Illinois over digital asset tax

2 min read

A crypto industry group, TDC, filed a federal lawsuit asking a judge to block Illinois' Digital Asset Tax Act, which was added to the state budget at the end of the session. The suit alleges violations of the Illinois constitution's uniformity and due process clauses, the U.S. Commerce Clause, and the Internet Tax Freedom Act, and claims federal tax law preempts the state measure. The law imposes a 0.2% tax on digital asset service firms based in or providing services in Illinois with over $100,000 in gross receipts and is set to take effect in January.

Lawsuit seeks to block Illinois' 0.2% digital asset tax