The state of New York could soon impose a tax on cryptocurrency and non-fungible token (NFT) transactions under a new proposal introduced in the state Assembly. Assembly Bill 8966, sponsored by Democratic Assemblymember Phil Steck, seeks to apply a 0.2% excise tax on the sale or transfer of digital assets. Bill Aims to Fund School Substance Abuse Programs If enacted, the measure would take effect immediately, covering all qualifying transactions from September 1 onward. According to the bill, funds generated from this tax would be directed to expand substance abuse prevention and intervention programs in schools across upstate New York. The legislation specifies that the tax would apply to “digital currencies, digital coins, digital non-fungible tokens or other similar assets.” Supporters argue that, given New York City’s position as a global financial hub and a major center for crypto-related business, the measure could generate significant revenue for public programs. Before becoming law, the bill must clear several legislative hurdles. It will first be reviewed in committee, then voted on by the full Assembly, before moving to the Senate and finally to the governor’s desk for approval or veto. Crypto Tax Landscape and Industry Impact The proposal comes amid a patchwork approach to cryptocurrency taxation across the United States . While the federal government taxes digital assets as property, state-level rules vary widely. Texas has eliminated certain taxes to attract business, Washington exempts crypto from sales tax, and California treats crypto similarly to cash. New York already classifies cryptocurrency as cash for state tax purposes. Given its prominence in finance, New York City hosts several key players in the crypto sector, including stablecoin issuers Circle Internet Group and Paxos, crypto exchange Gemini, and blockchain analytics firm Chainalysis. Many of these companies operate under the state’s BitLicense regime, a regulatory framework introduced in 2015 that was initially criticized for driving some crypto firms out of New York due to its stringent requirements. Others embraced it as a path to compliance in one of the most heavily regulated markets in the world. If passed, the new tax could mark another major policy development for the state’s digital asset industry, potentially influencing where companies choose to base their operations. The post New York Proposes 0.2% Tax on Crypto and NFT Transactions appeared first on TheCoinrise.com .
