New York legislators propose that Bitcoin miners pay more taxes

By Hannah Pérez

Democratic legislators from the state of New York presented a bill so that Bitcoin miners in front of greater taxes. The proposal resumes the debate on energy consumption and environmental impact of cryptocurrency mining.

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New legislative proposal in New York proposes Special Tax for Miners Bitcoin.
Democratic legislators presented the bill, proposing staggered charges for energy consumption.
They point to Pow cryptocurrency mining operations, such as Bitcoin, Litecoin, Dogecoin.
It adds to the efforts of Democrats in New York to discourage the cryptocurrency industry.

A new proposal to impose a tax on cryptocurrency miners for its energy consumption, has emerged in the state of New York, United States, reviving the long -standing debate on the environmental impact of said activity.

New York Democratic legislators presented a law proposal on Wednesday that seeks to impose a special tax on companies that are dedicated to cryptocurrency mining, according to various news media.

The Tax would specifically point to the cryptocurrency extraction activity based on the work testing mechanism (Proof-OF-work or POW), such as Bitcoin, Litecoin, Dogecoin. The main objective, according to its promoters, is to alleviate energy costs for low -income households, which are affected by the high electrical consumption of mining operations.

Special Tax for Miners Crypt in New York

The initiative, presented to the Senate and identified as the “S8518”, was introduced by Senator Liz Krueger and Assemblyman Anna Kelles. Both legislators argue that the growing presence of cryptocurrency mining in the state is raising electricity rates for common New Yorkers.

According to Decryptproject defenders cite investigations that suggest that cryptocurrency mining adds an estimated annual cost of USD $ 79 million for individual consumers and USD $ 165 million for small businesses at the state level.

Senator Krueger declared that the law seeks to ensure that “Companies that promote the increase in electricity rates of New York pay their fair part, while providing direct relief to families fighting against the increase in public services costs“, Add that publication.

Energy consumption stepped system

The heart of the bill is a staggered tax system based on the amount of energy consumed based on kilowatt-hora (kWh), as detailed both Cointelegraph as Bitcoin Magazine.

There would be no charge for consumption of up to 2.25 million kWh per year, while a 2 cents per kWh would apply to those with consumption of between 2.26 to 5 million KWH annual. The charges would rise to 3, 4 and 5 cents for consumers of 5-10 million annual kWh, 10-20 million KWH annual and more than 20 million KWH annual, respectively.

The funds raised through this tax will be used directly to the New York energy affordability programsseeking to subsidize public services clients with limited resources, he explained Bitcoin Magazine.

Exemptions and impact on industry

The proposal includes a significant exemption for mining operations that use 100% renewable or sustainable energy, leaving them exempt from said tax, according to the proposal, a measure that seeks to promote “innovation and sustainability within the digital asset sector,” he shared Decrypt.

For the mining industry, the proposal raises a new regulatory and financial challenge. Cryptocurrency mining is a highly competitive business with narrow gain margins, and the imposition of an energy tax could further erode these margins, as noted Cointelegraph.

This could force the miners dependent on the local electricity network to move to jurisdictions with lower energy costs, or that they simply do not apply additional rates to the industry. In other words, tax increase could make companies “They probably think twice” Before settling in New York, as Bitcoin Magazine points out.

The bill adds to other efforts of New York Democratic legislators to collect more taxes on Bitcoin miners and discourage the presence of cryptocurrency companies in the state. This proposal comes shortly after a two -year moratorium expired in that state that prohibited the mining of cryptocurrencies dependent on fossil fuels.

Article written with the help of AI, edited by Diariobitcoin

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