Thomas Daniels
Assemblymember Phil Steck has introduced New York Assembly Bill 8966, proposing a 0.2% excise tax on the sale and transfer of digital assets, including cryptocurrencies and non‑fungible tokens (NFTs). The bill, if enacted, would take effect on September 1 and apply to all digital asset transactions across the state.
Revenue generated from the proposed tax would be allocated to expand substance abuse prevention and intervention programs in upstate New York schools. The bill marks a significant step toward integrating digital asset taxation into broader social policy objectives.
Assembly Bill 8966 explicitly defines taxable assets to include digital currencies, digital coins, NFTs, and similar blockchain-based tokens. Before it becomes law, the bill must pass through committee, gain approval from both legislative chambers, and be signed by the governor.
State-level tax treatment of digital assets in the U.S. remains inconsistent. While New York and California treat crypto similarly to cash, other states, such as Washington, have exempted crypto from taxation altogether. This regulatory patchwork continues to create varying tax obligations for digital asset investors and firms.
New York City’s position as a global financial and fintech hub—with major players like Circle, Paxos, Gemini, and Chainalysis headquartered there—could make the proposed levy a significant source of state revenue. The state’s 2015 introduction of the BitLicense was a pioneering yet controversial move in digital asset regulation, with some companies leaving due to its stringent requirements while others embraced the opportunity to operate under formal oversight.
The new tax initiative suggests a recalibrated approach: leveraging the state’s regulatory authority not only for oversight but also as a funding mechanism for public health initiatives.
