Illinois will collect hundreds of millions of dollars in new tax revenue from the digital economy under sweeping tax legislation Gov. JB Pritzker (D) signed Tuesday.
Pritzker signed SB 3019, which is expected to raise more than $800 million in new tax revenue to support his $55.9 billion budget for fiscal 2027. Much of the revenue will come from four new tax programs targeting digital advertising, prediction markets, investors in cryptocurrency, and social media platforms.
The governor signed the measure despite opposition from tech companies and digital currency advocates, which warned Illinois would be opening its doors to a series of constitutional challenges. Maryland has been mired in litigation over a similar tax on digital advertising for five years, and Chicago became a litigation target after enacting last year a levy on social media platforms such as X Corp. and
The technology trade association NetChoice had called on Pritzker to use his amendatory veto authority to strip out the taxes on targeted digital advertising and social media users.
“Both provisions are constitutionally and legally defective, will impose real harm on Illinois residents and businesses and will generate costly litigation far outweighing any projected revenue,” Amy Bos, NetChoice’s vice president of government affairs, wrote in a June 2 letter to Pritzker.