The state of New York is proposing a new bill that introduces a 0.2% tax on the sales and transfers of crypto assets, including NFTs, aimed at increasing tax revenues.
Details of the Bill
The bill, introduced by Democratic Assemblymember Phil Steck, proposes an excise tax of 0.2% on "digital asset transactions, including the sale or transfer of digital assets." If passed, the tax would take effect on September 1.
Allocation of Funds
According to the bill, revenue generated from the crypto tax will be earmarked for expanding a substance abuse prevention and intervention program in schools throughout upstate New York.
Comparison with Other States
Tax regulations for cryptocurrency in the US vary by state. For instance, some states like Texas have significantly lowered corporate taxes to attract businesses, while New York classifies cryptocurrencies as cash, unlike others that may exempt them from taxation.
The proposed taxation on cryptocurrency and NFTs could significantly impact New York’s financial ecosystem while also providing funding for an important social program.
