New York Assemblymember Phil Steck has proposed legislation to impose a 0.2% excise tax on cryptocurrency transactions, estimated to generate $158 million annually. This revenue is intended to support substance abuse prevention programs in upstate New York, addressing issues exacerbated by the opioid epidemic. Steck's bill, introduced as A0966, reflects a broader effort by some states to leverage crypto revenues for educational initiatives. The tax would apply to all crypto transactions, including NFTs and assets acquired through mining and staking. New York's Department of Financial Services has not provided specific data on transaction volumes, leading Steck to estimate revenue based on cryptocurrency value sent to the U.S. between July 2022 and June 2023, adjusting it according to New York's GDP share. As cryptocurrencies are treated as cash equivalents for tax in eight states, this bill positions New York to capitalize on the growing crypto market while addressing urgent community health needs.

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