New York’s Assembly Bill 8966 proposes a 0.2% tax on crypto and NFT transactions, funding school substance abuse programs if passed into law.
Author: Akshat Thakur
August 15 2025– A new bill in New York aims to impose a 0.2% excise tax on cryptocurrency and NFT transactions, with revenue earmarked for school substance abuse prevention programs.
Assemblymember Phil Steck introduced Assembly Bill 8966 on Wednesday, proposing a 0.2% excise tax on all digital asset transactions, including the sale and transfer of cryptocurrencies and NFTs. If enacted, the bill would take effect immediately, with the tax beginning on September 1.
The proposal highlights New York’s intention to capture revenue from its thriving crypto sector. New York City, as the world’s largest financial hub, is home to numerous fintech companies and major crypto players who collectively manage billions in digital assets.
According to the bill, the collected tax revenue would be directed toward expanding substance abuse prevention and intervention programs in schools across upstate New York. The legislation specifies that the levy would apply to digital currencies, coins, NFTs, and similar assets.
Before becoming law, the bill must clear several legislative steps: passing a committee, securing approval from the full Assembly, moving through the state Senate, and receiving the governor’s signature.
Taxation on cryptocurrency transactions varies significantly across the United States. While some states such as California and New York treat crypto similarly to cash, others like Washington exempt it from certain taxes. States like Texas attract businesses by eliminating corporate and income taxes entirely.
New York has played a significant role in the crypto industry, being the first U.S. state to introduce a comprehensive regulatory framework for digital assets through its BitLicense program in 2015. While the regulation prompted some companies to leave, firms like Circle, Paxos, and Gemini opted to operate under the rules, reinforcing New York City’s position as a global leader in financial innovation.
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