Crypto
Home›Crypto›Regulation›Crypto trade groups sue Illinois over 0.2% crypto tax
Crypto trade groups sue Illinois over 0.2% crypto tax
The lawsuit filed in Sangamon County targets Illinois’ 0.2% tax on firms transacting or storing crypto for customers, which critics estimate could raise $60 million even when taxpayers lose money.
CoinDesk reports that two additional crypto advocacy groups, the Crypto Council for Innovation and the Blockchain Association, have joined the legal fight against Illinois’ newly approved digital asset tax.
The groups filed a lawsuit in Sangamon County after a prior challenge from the Digital Chamber, arguing the 0.2% tax violates multiple constitutional provisions as well as the Internet Tax Freedom Act.
According to the filing, the tax applies to businesses based in Illinois or providing services to residents, with total receipts above $100,000, and it is assessed on businesses transacting or storing crypto for customers within the state.
The article says the tax has been estimated to potentially raise $60 million for Illinois’ state budget, and critics argue it could be charged even when a taxpayer has lost money on crypto because it is based on transactions.