Illinois state officials and crypto industry groups have filed a joint motion seeking a six-month delay to the state's Digital Asset Tax, moving its implementation from January 1, 2027 to July 1, 2027.
The motion, filed October 1 in Sangamon County, was submitted as a constitutional challenge brought by The Digital Chamber and the Illinois Blockchain Association continues. Revenue Director David Harris and Attorney General Kwame Raoul joined the request, even as the state maintains its defense of the law's validity.
The Digital Asset Tax, enacted in June, imposes a 0.2% levy on the value of digital assets involved in covered transactions rather than on trading profits. Brokers are responsible for collecting and remitting the tax, with customers facing a fallback obligation to self-report and pay if the tax is not collected by the 20th of the following month.
According to draft rules from the Illinois Department of Revenue, the tax applies broadly to certain transactions, including fee-paid withdrawals from a broker to self-custody wallets when statutory conditions are met, while direct transfers without a covered broker may fall outside the levy.
The joint filing preserves both sides' legal positions while delaying collection as the lawsuit and rulemaking process continue. The state has not conceded the law is unconstitutional or sought its repeal.
The Illinois Department of Revenue continues accepting public comments on preliminary rules through October 30. The rules have not yet been filed with the Secretary of State or submitted to the Joint Committee on Administrative Rules. The parties have also requested moving the state's deadline for responding to the lawsuit to November 13.
A court-approved delay would remove the immediate collection deadline for brokers and customers through the first half of 2027, providing affected firms additional time to develop collection and reporting procedures. However, compliance work may continue as implementation details remain unsettled.
