Illinois officials and two digital-asset industry groups have jointly asked a state court to postpone the effective date of the state’s Digital Asset Tax by six months. The request would move the tax’s start from January 1 to July 1, 2027, giving the court more time to consider a constitutional challenge before collection begins.
The filing requests a delay; it does not grant one
The October 1 filing is an agreed motion for a preliminary injunction in the Circuit Court of Sangamon County, case 2026-MR-271. The Chamber of Digital Commerce and the Illinois Blockchain Association filed it with Illinois Department of Revenue director David Harris and Attorney General Kwame Raoul.
That procedural distinction matters. The parties have agreed to request the delay, but the motion says the injunction would take effect only when the court enters an order. Until then, the statutory January 1 effective date has not been displaced by this filing alone.
If approved, the injunction would remain in force until July 1 unless the court modifies or dissolves it earlier. The proposal would also give the state defendants until November 13, 2026, to answer or otherwise respond to the amended complaint.
Both sides preserve their positions
The motion does not settle whether the tax is lawful. It says the plaintiffs filed their original complaint on July 21 and later sought to add the Illinois Blockchain Association and further claims. The plaintiffs allege violations of several provisions of the Illinois Constitution, including its uniformity and due-process clauses and its restriction on ad valorem taxation of personal property. They also raise federal Commerce Clause, due-process and Internet Tax Freedom Act arguments.
The state defendants dispute those allegations. By joining the request, they are not conceding any issue of law or fact. The filing expressly reserves every party’s claims and defenses and limits the factual stipulations to the requested preliminary relief.
What the proposed timetable changes
The motion identifies the tax as part of Article 3 of Public Act 104-0468. It says the General Assembly enacted the measure and the governor signed it on June 16, 2026. Although the act took effect when signed, the tax itself is scheduled to begin in January.
The agreed timetable is therefore a pause before collection rather than a repeal. The parties say the additional six months would preserve the status quo and allow orderly briefing and adjudication without prejudicing either side. The motion also does not create a permanent exemption or narrow the companies and transactions covered by the act. Those questions remain part of the wider dispute rather than the limited request now before the court.
For exchanges, custodians, payment companies and other businesses potentially affected by the measure, the immediate question is whether the judge enters the proposed order. The merits of the constitutional case would remain unresolved even if the delay is granted. A signed order would change the implementation calendar, not decide which side is right.
Adapted from Illinois Agrees to Delay Digital Asset Tax to July 2027.