Tax revenue will fund substance abuse prevention and intervention programs in upstate New York schools.
New York may soon make history again in the crypto world, but this time, it’s not about regulation, it’s about taxes. A new bill from State Assemblymember Phil Steck proposes a 0.2% tax on all cryptocurrency transactions, including Bitcoin, Ethereum, and NFTs.
While it sounds tiny, the move could have a big impact on both traders and the state’s finances.
The idea comes from Assemblymember Phil Steck, who recently introduced Assembly Bill 8966. If the bill passes, starting September 1, anyone selling or transferring digital assets in New York would pay this 0.2% tax. That includes cryptocurrencies like Bitcoin, stablecoins, and NFTs.
For example, if you sell $10,000 worth of Bitcoin would mean paying $20 in tax. The money collected would be used to fund school programs that fight substance abuse.
This isn’t New York’s first big crypto rule. Back in 2015, the state introduced the BitLicense, which forced some companies to leave and others to follow stricter rules. Now, with this new bill, New York could once again influence how crypto is taxed.
Before becoming law, the bill must go through several steps:
If any of these steps fail, the bill won’t move forward.
While New York is considering adding a tax, other states are taking a different approach. Texas, for example, has no state income or corporate tax, and some states, like Washington, even exempt crypto from certain taxes.
If passed, this tax would make New York one of the stricter states when it comes to crypto rules, adding to its already tough regulatory history, such as the BitLicense introduced in 2015.
Unlike many tax proposals that simply boost the state budget, this one has a specific purpose. The revenue from the crypto tax would fund substance abuse prevention and intervention programs in upstate New York schools.
In simple words, the goal is to use innovation in finance to tackle serious social problems.
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