New York crypto tax: Assemblymember Phil Steck proposes a 0.2% excise tax on crypto transactions to raise an estimated $158 million annually for substance abuse programs; the proposal applies to transfers including stablecoins and does not exempt high-frequency trading or intra-account transfers.
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0.2% excise tax proposed
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Estimated $158 million annual revenue earmarked for statewide substance abuse support
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Tax applies to transfers, including stablecoins; critics warn it may penalize routine transfers and bookkeeping
New York crypto tax: 0.2% excise on crypto transactions to fund substance abuse programs—read effects, exemptions, and estimated revenue today.
What is New York’s proposed crypto transaction tax?
New York crypto tax is a proposed 0.2% excise on cryptocurrency transactions introduced by Assemblymember Phil Steck to generate revenue—an estimated $158 million yearly—for expanding substance abuse services across the state. The bill would apply to transfers, including stablecoins, with no carve-outs for high-frequency traders.
How would the 0.2% excise tax work and who pays it?
The excise tax is charged on crypto transfers within New York’s jurisdiction, including movements between an individual’s own wallets and stablecoin swaps. Steck’s office framed the levy as a straightforward revenue mechanism to expand an existing support program run by the state Office of Alcoholism and Substance Abuse Services.
How does the proposal treat stablecoins and everyday payments?
Steck told reporters that the bill will not exempt stablecoins used for payments. He argued that crypto is largely speculative and “a form of entertainment,” and said he does not see crypto replacing the dollar in routine commerce.
Why do critics oppose taxing intra-account transfers?
Tax experts warn the bill’s plain text taxes transfers between accounts owned by the same person. Nick Slettengren, co-founder and CEO of Count on Sheep, said that unless regulations carve out such movements, the tax would penalize basic bookkeeping and security hygiene, risking confusion and disputes.
When would the tax take effect and what revenue is expected?
The bill would take effect immediately upon passage. Steck estimates roughly $158 million annually in revenue, targeted to expand substance abuse services upstate that the state’s Office of Alcoholism and Substance Abuse Services currently struggles to fully fund.
What impact could the tax have on markets and traders?
Steck indicated no exemptions for high-frequency trading, calling such activity “a form of gambling.” Observers caution that applying an excise to rapid algorithmic trades and routine internal transfers may change trade behavior, add compliance costs, and create enforcement challenges in New York’s dense financial ecosystem.
Comparison: Proposed Crypto Excise vs. Historical Transfer Fees
| Tax/Fee | Rate | Notes |
|---|---|---|
| Proposed crypto excise | 0.2% | Targets crypto transactions, includes stablecoins and intra-account moves |
| New York historic stock transfer fee | $0.05 per sale over $20 | Collected 1905–1981; Steck has called for reinstatement |
Frequently Asked Questions
Will stablecoins be exempt from the tax?
No. The legislation, as described by Assemblymember Phil Steck, would not provide exemptions for stablecoins used in payments; it treats stablecoin transfers as taxable crypto transactions.
Does the tax apply to transfers between my own wallets?
Yes. Under the bill’s text, transfers between accounts owned by the same person are taxable. Tax professionals warn this could penalize routine bookkeeping and security transfers unless regulations clarify exemptions.
How to calculate the tax on a crypto transfer?
Quick calculation: Multiply the transfer amount by 0.002 (0.2%). For example, a $10,000 transfer would incur a $20 excise. The calculation applies equally to stablecoin transfers and internal account moves under the bill’s language.
Key Takeaways
- Revenue goal: The 0.2% excise aims to raise ~$158M to expand substance abuse programs statewide.
- Scope: Proposal covers stablecoins, intra-account transfers, and high-frequency trading with no stated exemptions.
- Concerns: Taxing routine transfers could penalize bookkeeping and security practices and complicate enforcement.
Conclusion
Assemblymember Phil Steck’s proposed New York crypto tax is positioned as a targeted excise to fund substance abuse services, estimated at $158 million annually. While the proposal aims to be straightforward, experts warn that taxing intra-account transfers and high-frequency trades could create unintended consequences. Lawmakers will debate details when the legislature reconvenes.
Author: COINOTAG • Published: 2025-08-20 • Updated: 2025-08-20
