New York State senator proposes tax on crypto mining energy use

The legislative proposal introduces a tiered tax system for energy used by crypto miners in New York, charged by kilowatt-hour used.

New York State Senator Liz Krueger introduced a bill on Wednesday to impose excise taxes on energy used by crypto mining companies operating facilities in the state.

The proposed excise tax, which is not the first legislative initiative of its kind, will be levied in tiers, with no charge for miners consuming 2.25 million kilowatt-hours (kWh) or less per year and a tax of 2 cents per kWh for miners who consume 2.26 million to 5 million kWh annually.

Miners who consume between 5 million-10 million kWh per year face a tax of 3 cents per kWh; those using up to 20 million kWh will be charged 4 cents per kWh; and any miner consuming over 20 million kWh per year will be charged a tax of 5 cents per kWh.

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