The new levy targets firms handling crypto transactions or storage for Illinois residents with over $100,000 in gross receipts.
Illinois Governor J.B. Pritzker signed a $56 billion state budget that includes a 0.2% tax on digital asset business activity. The tax applies to firms exchanging, transferring, or storing cryptocurrencies for Illinois residents or those based in the state.
The provision was added last-minute, with the legislature now out of session for the year. It targets businesses with gross receipts of at least $100,000 and is expected to generate around $60 million in revenue. The crypto industry has criticized the move but lacks immediate recourse to challenge it.
The tax defines digital asset business activity as any single occurrence of crypto-related transactions conducted on behalf of customers. Firms must report the tax, though no immediate market reaction was detailed in the legislation.