New York Proposes 0.2% Tax on Crypto and NFT Transactions to Fund School Programs

New York State Assembly member Phil Steck has introduced a bill that would impose a 0.2% excise tax on cryptocurrency and NFT transactions. The proposed legislation, Assembly Bill 8966, aims to amend state tax laws to include digital assets, with revenues earmarked for substance abuse prevention programs in upstate schools.

The tax WOULD apply to all blockchain-based assets, including cryptocurrencies, NFTs, and other digital tokens. If passed, the measure would take effect on September 1, potentially reshaping New York's approach to digital finance while generating new revenue streams.

Critics warn the tax could drive crypto firms out of the state, echoing the exodus that followed New York's controversial BitLicense regulations. Proponents argue it strikes a balance between fostering innovation and funding critical social programs.