While positive steps continue to be taken towards Bitcoin (BTC) and cryptocurrencies in the US, an unusual proposal came from New York Democratic Congressman Phil Steck.
Accordingly, Democratic lawmaker Phil Steck introduced a bill that would tax the state’s cryptocurrency sales and transfers.
The bill, referred to as Parliamentary Bill No. 8966, proposes imposing a special consumption tax on the sales and transfers of crypto assets.
Accordingly, the bill proposes to impose a 0.2% Special Consumption Tax on all cryptocurrency transactions, including Bitcoin, Ethereum, and NFTs.
It is stated that if the bill becomes law, it could provide significant tax revenue to the state.
The bill also stipulates that tax revenues will fund substance abuse prevention programs in schools in upstate New York.
If passed, the bill will take effect immediately and apply to all sales and transactions from September 1.
However, before the bill can come into effect, it must pass a parliamentary committee, be approved by the general assembly, then receive approval from the senate and finally receive the governor’s signature.
In the US, states are taking different approaches to cryptocurrencies. New York has proposed a bill to add a tax on crypto transactions, while Texas has no state income or corporate taxes. Some states, such as Washington, exempt cryptocurrencies from certain taxes.
*This is not investment advice.