The Illinois General Assembly has approved a budget bill for fiscal year 2027 that includes a controversial 0.2% tax on cryptocurrency transactions. This measure, part of a broader $56 billion budget plan, places the responsibility of collecting the tax on registered digital asset brokers. Advocates from the digital asset industry are expressing significant concerns regarding the implications for crypto users.
Senate Bill 3019, which encompasses this tax, passed early on Monday along party lines. It designates the tax as a “privilege tax” and incorporates registration requirements for brokers operating in Illinois. Failure to comply with these regulations could result in serious penalties, including a Class 3 felony charge, which carries a prison sentence of two to five years and fines up to $25,000.
Although the bill has been passed, it awaits the signature of Governor JB Pritzker to become law. Pritzker has indicated intentions to sign it soon, with expectations that the crypto tax will generate approximately $60 million for the state. Industry groups, including the Digital Chamber and Illinois Blockchain Association, are urging the governor to reconsider, arguing that the lack of consultation and the method of inclusion within the budget are problematic.