Illinois has agreed to delay the implementation of its virtual asset tax by six months. The tax was originally slated to take effect in January next year. However, this agreement still requires court approval.
CoinDesk reported on Thursday that the Digital Chamber of Commerce (TDC) and the Illinois Blockchain Association reached this agreement with state authorities. This compromise may provide some relief to the virtual asset industry, which has been advocating for the tax’s complete abolition.
In June, Illinois lawmakers approved a measure to impose a 0.2% tax on virtual asset-related activities for businesses with revenues exceeding 100,000 USD. The tax would apply to all trading operations and asset custody services.
Industry representatives have challenged the law in court, arguing that it violates state and federal statutes and may be unconstitutional. If the court approves the agreement, the tax implementation will be pushed back to July of next year.
Cody Carbone, Chief Executive Officer (CEO) of the TDC, expressed satisfaction with the agreement in a statement. It welcomes Illinois’ decision to postpone the digital asset tax, Carbone said. This delay will ease the burden of costly compliance for digital asset companies and users while we continue the legal efforts to permanently overturn this tax.