According to CoinDesk, the Crypto Council for Innovation (CCI) and the Blockchain Association have filed a civil lawsuit in Sangamon County, Illinois, joining a legal challenge to the state’s digital asset tax policy. The plaintiffs say the new law violates the U.S. Constitution, the Illinois Constitution and the Internet Tax Freedom Act. The dispute centers on a 0.2% tax on digital asset transactions or custody, applied to entities with annual revenue above $100,000. Lawmakers had projected the measure would raise $60 million a year for the state budget. The plaintiffs argue that, because no comparable tax applies to traditional assets, the policy amounts to a unique punitive treatment of digital assets and an unfair allocation of resources through the tax code.
CCI and the Blockchain Association file suit in Illinois
ChainCatcher reported, citing CoinDesk, that the Crypto Council for Innovation (CCI) and the Blockchain Association have filed a civil lawsuit in Sangamon County, Illinois, joining the legal fight over the state’s digital asset tax policy.
The move follows a lawsuit filed last month by The Digital Chamber.
The challenge targets the law’s legality
The plaintiffs say the new tax law violates the U.S. Constitution, the Illinois Constitution and the Internet Tax Freedom Act.
At the center of the case is a rule that would impose a 0.2% tax on digital asset transactions or storage for any entity doing business in the state or serving Illinois residents, as long as annual revenue tops $100,000.
State revenue estimate and the plaintiffs’ argument
State lawmakers had expected the measure to generate $60 million a year for the budget.
The plaintiffs say digital assets are being treated as a uniquely punitive category because there is no matching tax on traditional assets. They also argue that the tax code is being used to distribute resources unfairly.
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