{"id":15040,"date":"2025-08-15T09:23:34","date_gmt":"2025-08-15T07:23:34","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=15040"},"modified":"2025-08-15T09:23:34","modified_gmt":"2025-08-15T07:23:34","slug":"new-york-proposes-tax-on-cryptocurrency-transactions-and-transfers","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/08\/15\/new-york-proposes-tax-on-cryptocurrency-transactions-and-transfers\/","title":{"rendered":"New York Proposes Tax on Cryptocurrency Transactions and Transfers"},"content":{"rendered":"

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The US region of New York could impose taxes on the sales and transfers of cryptocurrency and non-fungible tokens (NFTs), according to a proposal presented in the state\u2019s Assembly.<\/p>\n

Assembly Bill 8966, put forward<\/a> on Wednesday by Democratic Assemblymember Phil Steck, seeks to introduce a 0.2% excise tax on \u201cdigital asset transactions, encompassing the sale or transfer of digital assets.\u201d<\/p>\n

If the bill is passed, it would be implemented immediately and would pertain to all sales and transactions, commencing on Sept. 1.<\/p>\n

If enacted, the legislation could generate considerable tax revenue for the state, as New York City is recognized as the world\u2019s largest financial and fintech center, housing sectors that have adopted cryptocurrency by accumulating billions in value<\/a> of tokens or providing crypto-based financial services.<\/p>\n

Crypto tax intended to support school substance abuse initiatives<\/h2>\n

Steck\u2019s proposal indicates that the revenue generated from the crypto tax sales would be allocated to enhance a \u201csubstance abuse prevention and intervention program in schools throughout upstate New York.\u201d<\/p>\n

The legislation clarifies that it would amend the state\u2019s tax regulations<\/a>, with the new charge applying to \u201cdigital currencies, digital coins, digital non-fungible tokens, or other analogous assets.\u201d<\/p>\n

There are several phases before the proposal can become law. It must first pass through a committee before being voted on by the full Assembly; subsequently, it will be forwarded to the Senate and, if approved, sent to the governor, who has the power to approve or reject the bill.<\/p>\n

State taxes on crypto greatly differ<\/h2>\n

In the US, both federal and state authorities have the ability to impose taxes, leading to some states reducing \u2014 or, in Texas’s case, completely eliminating \u2014 corporate and income taxes to attract businesses aiming to reduce their tax obligations.<\/p>\n

Most states lack guidance on how their tax bodies should address cryptocurrency. Some, like California and New York, treat crypto as cash, while states such as Washington exempt cryptocurrency from taxation, according<\/a> to Bloomberg Tax.<\/p>\n

Crypto tax regulations by state as of July 2022. Source: <\/em>Bloomberg Tax<\/em><\/a><\/figcaption><\/figure>\n

New York hosts crypto giants<\/h2>\n

New York, particularly New York City, has historically been home to significant players in the crypto sector due to its prominence as a global financial hub.<\/p>\n

Related: <\/strong><\/em>White House crypto regulations offer SEC-CFTC clarity for US crypto entities: Attorney<\/strong><\/em><\/a><\/p>\n

Stablecoin issuers Circle Internet Group and Paxos, along with the crypto exchange Gemini and analytics firm Chainalysis, are based in the city, while numerous other crypto enterprises maintain offices there.<\/p>\n

New York was the pioneering US state to establish a thorough regulatory framework for cryptocurrency, debuting the BitLicense in 2015, a controversial permit that drove many crypto firms away due to its heavy demands. Others, such as Circle, Paxos, and Gemini, welcomed the chance to be regulated.<\/p>\n

Trade Secrets: <\/strong><\/em>Ether could \u2018surge like 2021\u2019 as SOL traders prepare for 10% decline<\/strong><\/em><\/a> <\/p>\n