New York Assemblymember Phil Steck has introduced legislation to impose a 0.2% excise tax on cryptocurrency transactions, which he estimates could generate $158 million annually. The revenue from this tax would support substance abuse prevention programs in upstate New York, especially given the state's ongoing opioid crisis. Steck, who chairs the committee overseeing addiction services, points to the need for funding in schools impacted by substance abuse issues. The proposed tax, known as Bill A0966, will apply to various crypto transactions, including NFTs and digital assets obtained through mining. Recent data indicates significant crypto activity in New York, further underpinning the anticipated revenue. Past scrutiny of the crypto industry, particularly following the collapse of exchanges like FTX, highlights the sector's vulnerabilities to fraud. These developments come as other states explore innovative tax measures related to cryptocurrency to bolster educational funding.

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