based on materials from the site - By Cointelegraph
The American state of New York is seeking to impose sales and transfer tax on cryptocurrencies and non-fungible tokens (NFTs) in accordance with a bill introduced in the state Assembly.
Bill 8966, introduced on Wednesday by Democratic Assembly member Phil Steck, proposes a 0.2% excise tax on 'transactions involving digital assets, including the sale or transfer of digital assets.'
If passed, the bill will take effect immediately and will apply to all sales and transactions from September 1.
This will bring significant tax revenues to the state budget, as New York is the world's largest financial and fintech center—an industry that actively uses cryptocurrency, buying billions of tokens or offering financial products based on cryptocurrency.
The cryptocurrency tax will be directed towards funding school programs to combat substance abuse.
Steck's bill stipulates that the funds generated from the sale of cryptocurrency should be directed towards expanding the 'substance abuse prevention and intervention program in schools in the northern part of New York State.'
The bill clarifies that it will change state tax legislation, and the new tax will apply to 'digital currencies, digital coins, digital non-fungible tokens, and other similar assets.'
Before the bill becomes law, it must go through several stages. It must be approved by the Assembly committee and then put to a vote before the entire Assembly. Then the bill will go to the Senate, and if approved, to the governor, who can sign the bill into law or veto it.
Cryptocurrency taxes vary widely among states.
In the USA, federal and state governments can levy taxes, leading to reductions—or, in the case of Texas, a complete elimination—of corporate and income taxes in states in an attempt to attract companies looking to minimize their tax liabilities.
According to Bloomberg Tax, most states lack guidelines on the taxation of cryptocurrencies, while in other states, such as California and New York, cryptocurrencies are treated as cash, and in states like Washington, cryptocurrencies are tax-exempt.
New York, or rather the city itself, has long been home to heavyweights in the crypto industry thanks to its status as a global financial center.
Stablecoin issuers Circle Internet Group and Paxos, as well as the cryptocurrency exchange Gemini and the analytics company Chainalysis have their headquarters in this city, along with many other crypto companies that have their offices there.
New York became the first state in the USA to introduce a comprehensive regulatory regime for cryptocurrencies, introducing BitLicense in 2015—a controversial permit that caused many crypto companies to leave the state, deeming it too burdensome. Others, such as Circle, Paxos, and Gemini, took advantage of the regulatory opportunity.
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