35 ILCS 195/3-15: Definitions.

In this Act:

"Customer" means a person receiving digital asset business activity from a digital asset broker for valuable consideration.

"Department" means the Department of Revenue.

"Digital asset" has the meaning set forth in Section 1-5 of the Digital Assets and Consumer Protection Act.

"Digital asset business activity" means any single occurrence of exchanging, transferring, or storing a digital asset as part of a business or on behalf of a customer who has entered into an agreement with a business for the provision of those services.

"Digital asset broker" means a person, as defined in Section 6045(c)(1)(D) of the Internal Revenue Code and any regulations as the Secretary of the Treasury may prescribe, who is engaged in the business of providing digital asset business activity to customers in this State.

"Digital asset broker maintaining a place of business in this State" means:

(1) Any digital asset broker having or maintaining within this State, directly or by a subsidiary, an office, distribution facilities, transmission facilities, sales office, warehouse or other place of business, or any agent or other representative operating within this State under the authority of the digital asset broker or its subsidiary, irrespective of whether the place of business or agent or other representative is located here permanently or temporarily, or whether the digital asset broker or subsidiary is licensed to do business in this State.

(2) Any digital asset broker who is headquartered outside of this State and who sells digital asset business activity to Illinois customers remotely if the digital asset broker's gross receipts from digital asset business activity sales to Illinois customers are $100,000 or more.

The digital asset broker shall determine on a quarterly basis, ending on the last day of March, June, September, and December, whether the digital asset broker meets the threshold in this paragraph (2) for the preceding 12-month period. If the broker meets the threshold for a 12-month period, the broker is considered a digital asset broker maintaining a place of business in this State and is required to collect and remit the tax imposed under this Act and file returns for one year. At the end of the one-year period, the broker shall determine whether the broker met the threshold during the preceding 12-month period. If the broker met the threshold for the preceding 12-month period, the broker is considered a broker maintaining a place of business in this State and is required to collect and remit the tax imposed under this Act and file returns for the subsequent year. If, at the end of a one-year period, a broker that was required to collect and remit the tax imposed under this Act determines that the broker did not meet the threshold during the preceding 12-month period, the broker shall subsequently determine on a quarterly basis, ending on the last day of March, June, September, and December, whether the broker meets the threshold for the preceding 12-month period.

"Exchange", when used as a verb, means to exchange, buy, sell, trade, or convert, on behalf of a customer, either of the following:

(1) a digital asset for fiat currency or one or more forms of digital assets; and

(2) fiat currency for one or more forms of digital assets.

"Exchange" does not include buying, selling, or trading digital assets for a person's own account in a principal capacity.

"Fiat currency" means a medium of exchange or unit of value issued by the United States or a foreign government that is designated as legal tender in its country of issuance.

"Person" means any natural individual, firm, partnership, association, corporation, limited liability company, or trust; any receiver, executor, trustee, guardian, or other representative appointed by order of any court; or any other entity. Unless expressly provided otherwise, the term "person" does not include a governmental entity or a unit or instrumentality of a government entity.

"Purchase price" means the consideration paid for the purchase of digital asset business activity from a digital asset broker, valued in money, whether received in money or otherwise, including cash, gift cards, credits, and property, and shall be determined without any deduction on account of the cost of materials used, labor or service costs, or any other expense whatsoever. "Purchase price" includes any and all charges that the customer pays related to or incidental to the receipt of digital asset business activity.

"Sale" means an agreement between a digital asset broker and a customer for the broker to provide the customer with a digital asset business activity for valuable consideration. If the digital asset business activity is sold as a bundle of separate services, each service shall constitute an individual sale for the purposes of this Act.

"Store", "storage", and "storing", except in the phrase "store of value", means to store, hold, or maintain custody or control of a digital asset on behalf of a customer by a digital asset broker.

"Transfer" means to transfer or transmit a digital asset on behalf of a customer, including by doing any of the following:

(1) crediting the digital asset to the account or storage of another person;

(2) moving the digital asset from one account or storage of a customer to another account or storage of the same customer; and

(3) relinquishing custody or control of a digital asset to another person.