New York state lawmakers have introduced a bill that would impose a 0.2% excise tax

New York Assemblymember Phil Steck introduced Assembly Bill 8966, proposing a 0.2% excise tax on cryptocurrency and NFT transactions, effective September 1, 2025, if passed. The bill, currently under review by the Assembly’s Ways and Means Committee, aims to fund substance abuse prevention programs in upstate New York schools, leveraging the state’s thriving crypto sector.

The tax applies to digital asset sales and transfers, including Bitcoin, Ethereum, and non-fungible tokens, defined as assets issued or transferred via blockchain technology. New York City, a global fintech hub hosting firms like Circle, Paxos, and Gemini, could generate significant revenue, with billions in digital assets traded annually. The bill places tax payment responsibility on the person effecting the transfer, potentially complicating compliance for exchanges and DeFi platforms.

Supporters, including Steck, argue the tax aligns with New York’s history of crypto regulation, like the 2015 BitLicense, and addresses the sector’s growth. However, critics warn it may drive businesses to crypto-friendly states like Texas, which scrapped certain taxes, or Washington, where crypto is tax-exempt. Posts on X reflect mixed sentiment, with some predicting a market sell-off and others debating its public finance role.

Contrary to the draft, no assembly member was directly quoted, and funds are specifically for school programs, not general infrastructure. The bill awaits Assembly and Senate approval before reaching the governor. This move could set a precedent for U.S. crypto taxation, balancing revenue with innovation. Stay updated on New York’s crypto policy developments.