Illinois Governor JB Pritzker signed a $55.9 billion state budget on Tuesday that inserts a 0.2 % “privilege tax” on crypto transactions, marking the first U.S. statewide levy of its kind.
Legislative Details
Senate Bill 3019, specifically Article 3, mandates a 0.2 % tax on every digital‑asset transaction conducted on platforms registered within Illinois. The provision treats all blockchain‑based trades alike, irrespective of profit, gain, or investor income, and obliges digital‑asset brokers to file detailed reports with state authorities. The measure forms part of the fiscal 2027 budget, which totals $55.9 billion.
Industry Reaction
The Crypto Council for Innovation (CCI) sent a letter to Governor Pritzker urging a line‑item veto of the new tax, warning that it would unfairly target Illinois residents who simply use digital assets. CCI argued that the tax could push blockchain innovators and crypto investors out of the state, diminishing local tech growth. Tax advisory firm BDO USA added that out‑of‑state companies with significant Illinois user activity might also feel the financial strain.
Potential Market Effects
Investors may reassess exposure to Illinois‑based crypto projects as the added cost erodes profit margins on trades involving Bitcoin, Ethereum, or other tokens. The unique tax structure could deter