The Digital Chamber has filed a lawsuit against the state of Illinois challenging a newly enacted digital‑asset tax that was added to the recent state budget.
According to the complaint, the Illinois Digital Asset Tax Act raises constitutional concerns under both the U.S. Constitution and Illinois state law, and it conflicts with a federal tax statute. The filing, submitted on Tuesday, seeks a federal court order to prevent the state from enforcing the tax.
The legislation contravenes the Illinois Constitution’s uniformity and due‑process provisions, the Commerce Clause, and the Internet Tax Freedom Act by singling out digital‑asset transactions, the suit states.
The Act was passed on short notice just before the legislative session concluded, imposing a 0.2 % levy on entities with a physical presence in Illinois or gross receipts exceeding $100,000. The tax is slated to take effect in January.
The complaint argues that the Internet Tax Freedom Act prohibits discriminatory state and local taxes on electronic commerce, asserting that the new tax fails to meet that standard.
