Lawsuit claims digital asset tax is unconstitutional
[July 24, 2026]
By Jim Talamonti | The Center Square
(The Center Square) – According to a lawsuit filed in Sangamon County
court, a new, first-in-the-nation digital asset tax in Illinois violates
both the U.S. and state constitutions.
The Digital Chamber filed the complaint against Illinois Department of
Revenue Director David Harris and Attorney General Kwame Raoul over the
tax scheduled to take effect on Jan. 1, 2027.
Bellementis law firm partner Olta Andoni said the 0.2% tax on every
digital asset is unconstitutional under the uniformity clause in
Illinois.
“The tax classifies by record-keeping technology, so it's not addressed
on any real and substantial difference between the assets. Second of
all, there is some due process implication here because the tax is very
vague,” Andoni told The Center Square.
The Digital Chamber’s complaint said the tax imposes an unfair burden,
even though Andoni said 0.2% may not sound like much.
“When you consider that this is going to be applicable to every single
transaction in digital asset, that definitely turns to be quite
impactful for a majority of the businesses,” Andoni said, adding that is
the first in the nation with such implications.
Under U.S. law, Andoni invoked the dormant commerce clause and 14th
Amendment due process.
“The most important count claim that we address is under the Internet
Tax Freedom Act that pretty much preempts the tax as a discriminatory
tax on electronic commerce,” Andoni said.
The tax is part of the revenue package signed by Gov. J.B. Pritzker last
month.
Senate Bill 3019 was originally an agricultural financing measure, but
the text was gutted and replaced with the 1,623-page revenue document
during the final hours of the legislative session this spring.
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Illinois state Rep. John Cabello, R-Machesney Park, speaks during an
interview. Photo: Greg Bishop / The Center Square
Less than a week after Pritzker signed the revenue package, state
Rep. John Cabello, R-Machesney Park, filed House Bill 5798 to
immediately repeal the digital asset tax.
“I don’t believe any other state has this, and yes, it’s very
punitive,” Cabello told The Center Square.
Cabello also said the measure was meant to generate $60 million or
more in new revenue for the state.
The Digital Chamber said its members are already incurring costs by
trying to comply with the new tax before it takes effect.
Andoni said, as far as she is aware, the Illinois Department of
Revenue has issued no implementation guide or guidance.
“The suit was just filed and any comments at this time would be
premature,” said IDOR Director David Harris in a statement provided
to The Center Square.
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