From ads to assets: Illinois’ expanding tax base

In this episode of the SALT Shaker Podcast, Partners Jeremy Gove and Chelsea Marmor are joined by Counsel Charles Capouet to break down Illinois’ sweeping new tax legislation passed at the close of its legislative session, and signed by Governor Pritzker on Tuesday, June 16.

The group walks through several significant new taxes targeting the digital economy, including the newest state to impose a targeted advertising services tax, a new social media platform fee, and a first-of-its-kind digital asset privilege tax on cryptocurrency activity.

They break down how Illinois’ targeted advertising tax compares to similar regimes in Maryland and elsewhere, including key definitions, exemptions, and the importance of programmatic advertising concepts in determining taxability in Illinois. The conversation highlights the broader trend of states pushing into digital and emerging markets, and the resulting litigation and policy questions.

The episode also includes a rapid-fire overview of other notable provisions in the Illinois budget legislation, including expanded taxation of prediction markets and fantasy contests, as well as new limitations on corporate net operating loss carryovers.