New York Assemblymember Phil Steck proposed a 0.2% excise tax on cryptocurrency transactions across the state, expected to generate $158 million annually. The legislation aims to utilize this revenue to expand substance abuse prevention and intervention programs in schools, addressing the ongoing opioid epidemic in upstate New York. Steck's proposal is based on data from Chainalysis between 2022 and 2023, estimating the tax would target crypto investors seeking quick wealth. This bill is significant as the state’s crypto transactions, including those involving NFTs and mining, are already subject to various taxes. Steck's efforts reflect a growing trend among states exploring financial solutions to assist education through crypto revenues. The bill also acknowledges past challenges in obtaining accurate transaction data from the New York Department of Financial Services, which did not provide specific dollar amounts for current crypto transactions, making it necessary for Steck to derive estimates based on broader national data.

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