New York Assemblymember Phil Steck has introduced legislation seeking to impose a 0.2% excise tax on all digital asset transactions. The proposed law would cover the sale or transfer of crypto currencies, non-fungible tokens (NFTs), and other comparable digital assets within the state.
Assembly Bill 8966, submitted on Wednesday, outlines that the tax would take effect immediately upon passage and implementation beginning in September. The measure aims to generate new revenue from New York’s expanding digital economy, particularly from its vibrant cryptocurrency and fintech sectors.
The bill specifies that proceeds from the tax would support substance abuse prevention and intervention programs in schools across upstate New York. These funds would enhance educational outreach and provide resources aimed at combating rising drug use among school-age children.
Steck’s proposal also clarifies that the levy would be integrated into New York’s existing tax framework, ensuring that digital coins, tokens, and NFTs fall under the same taxable category. This inclusion reflects the state’s view of these assets as similar to traditional financial instruments for taxation purposes.
Crypto Tax Policies Differ Across the United States
Before becoming law, the bill must first pass through a legislative committee and receive approval from the full Assembly. It would then move to the state Senate, and if passed, proceed to the governor’s desk for either approval or veto.
Across the United States, approaches to taxing cryptocurrency vary widely, with some states treating it like cash and others exempting it entirely. California and New York classify digital assets as taxable property, while states like Washington have chosen to exclude them from sales tax.
New York City’s position as a global financial hub has made it home to major cryptocurrency companies and blockchain innovators. Industry leaders, such as Circle Internet Group, Paxos, Gemini, and Chainalysis, operate their headquarters or major offices within the city’s financial districts.
The state was the first in the nation to establish a formal regulatory structure for cryptocurrencies, introducing the controversial BitLicense in 2015. While some companies left the state due to regulatory burdens, others chose to comply and continue operations under its oversight.
If adopted, Steck’s proposal could make New York one of the first states to earmark cryptocurrency tax revenue for targeted social programs directly.
