tl;dr
New York may soon impose a 0.2% excise tax on all cryptocurrency and NFT sales and transfers under Assembly Bill 8966, introduced by Assemblymember Phil Steck. The tax would take effect immediately upon passage and apply from September 1, with revenues funding substance abuse programs in upstate sch...
The US state of New York may soon impose a tax on the sales and transfers of cryptocurrencies and non-fungible tokens (NFTs), based on a bill introduced in the state Assembly. Assembly Bill 8966, brought forward by Democratic Assemblymember Phil Steck, proposes a 0.2% excise tax on all digital asset transactions, including sales and transfers. If passed, the bill would become effective immediately and apply from September 1.
This tax could generate substantial revenue for New York, particularly given New York City’s status as a leading global financial and fintech hub that has actively incorporated crypto assets. The bill specifies that proceeds from the tax would fund an expanded substance abuse prevention and intervention program in upstate New York schools.
Assembly Bill 8966 defines the taxable digital assets broadly to include digital currencies, coins, NFTs, and similar assets. However, the measure faces several hurdles ahead, including committee approval, full Assembly voting, Senate agreement, and finally the governor’s signature or veto.
Across the US, taxation of cryptocurrencies varies widely among states. While federal and state tax authorities both impose taxes, many states have yet to provide clear guidance on crypto taxation. Some states such as California and New York treat crypto as cash for tax purposes, whereas others like Washington exempt it entirely. Texas has even eliminated state corporate and income taxes to attract businesses.
New York City serves as a major base for several crypto industry powerhouses, including Circle Internet Group, Paxos, Gemini, and Chainalysis. The state was also pioneering in regulation, introducing the BitLicense framework in 2015. Although BitLicense prompted some companies to relocate due to regulatory complexity, others embraced the regulatory certainty it provided, enabling growth and innovation in the crypto sector.