Illinois, Crypto Groups Seek Six-Month Tax Delay

Illinois officials and crypto industry groups have jointly asked a state court to delay the start of a 0.2% tax on certain digital-asset transactions by six months, from January 1 to July 1, 2027. The proposed change is not final: the Sangamon County court must approve the agreed motion, filed October 1, and the legal challenge to the tax remains unresolved. The motion was submitted by state officials and industry plaintiffs, including the Digital Chamber and the Illinois Blockchain Association. It asks the court to postpone the tax’s effective date while the parties present arguments on whether the Digital Asset Tax Act is lawful. The filing preserves both sides’ claims and defenses; it does not settle the underlying dispute. The tax, signed into law in July by Gov. JB Pritzker, applies a 0.2% levy to qualifying digital-asset activity involving brokers and Illinois customers. The law covers certain exchange, transfer and storage services rather than only transactions that generate an investment gain. The scope and treatment of particular transactions are part of the implementation questions surrounding the measure.