Democrat Phil Steck from New York introduced a bill that would impose a tax on cryptocurrency transactions. This proposal has sparked interest and discussions regarding crypto taxation.
Overview of the Bill
The proposed bill, known as Bill No. 8966, aims to introduce a 0.2% special consumption tax on all cryptocurrency transactions, including Bitcoin, Ethereum, and NFTs.
Purpose of Tax Revenue
The bill states that tax revenues collected will be allocated to funding substance abuse prevention programs in schools in upstate New York.
Different Approaches to Cryptocurrency in the US
While New York proposes a tax on cryptocurrency transactions, states like Texas do not impose state income or corporate taxes. Other states, such as Washington, have exempted cryptocurrencies from certain taxes.
The cryptocurrency tax proposal in New York could significantly alter the state's tax policy, but it will need to pass multiple legislative hurdles before becoming law.
