Overview

• The legislation, introduced on August 13 in the New York State Assembly, proposes a 0.2% excise tax on the sale or transfer of digital assets such as cryptocurrencies and NFTs.
• Transaction facilitators, including exchanges and other intermediaries, would be responsible for collecting and remitting the tax to state authorities.
• All revenue from the levy is earmarked to expand substance-abuse prevention and intervention programs in schools across upstate New York.
• If approved by committee, the Assembly and Senate, and signed by the governor, the tax could take effect as early as September 1.
• Supporters cite a global trend toward tighter crypto tax enforcement, pointing to India’s recent unreported-income crackdowns and the UK’s planned HMRC transaction-reporting rules.