House and Senate Republicans joined together to call for the repeal of new taxes and fees approved as part of Illinois’ Fiscal Year 2027 revenue package.
The measures target digital assets, targeted digital advertising, exchange wagers and fantasy sports. Republican lawmakers say the new taxes represent another attempt to find additional sources of state revenue rather than addressing Illinois’ spending.
The repeal effort comes as some of the new taxes and fees are already facing legal challenges.
Lawsuits were filed challenging the Digital Asset Tax and Targeted Advertising Services Tax. The lawsuits allege the measures violate federal law and constitutional protections. Those claims remain pending, and the courts will ultimately determine their merits.
The Targeted Advertising Services Tax drew questions about potential litigation even before it was enacted. When Democrats approved the FY27 budget, they did not plan to collect revenue from the new tax during the fiscal year because a legal challenge was expected.
Illinois taxpayers should not be asked to shoulder the cost of defending new and legally contested taxes while state government continues searching for additional sources of revenue. House and Senate Republicans are instead calling for the new measures to be repealed.
Republican lawmakers say repealing the five measures would eliminate new tax burdens and avoid additional uncertainty surrounding their legal challenges.
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