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Crypto lobby group TDC sues Illinois over planned 0.2% digital asset tax

Illinois’ 0.2% tax would apply to firms based in the state or providing services with more than $100,000 in gross receipts, starting in January.

Reported · Written up by our desk · Regulation

CoinDesk reports that TDC, also known as The Digital Chamber, has filed a lawsuit seeking to block Illinois’ Digital Asset Tax Act from taking effect next year.

The suit says the 0.2% tax would apply to any entity based in Illinois or providing digital asset services in the state, with coverage tied to gross receipts above $100,000.

TDC argues the act violates the Illinois and U.S. constitutions and is preempted by federal tax law, citing issues including uniformity and due process under the Illinois constitution, the U.S. Commerce Clause, and conflicts with the Internet Tax Freedom Act.

The filing also challenges how the law treats digital asset transactions, saying it does not distinguish between gains and losses or between realized and unrealized appreciation, and it draws only a technology-based line between traditional financial infrastructure and blockchain infrastructure.

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