New York is targeting bitcoin mining in proposed tax hiking buildings

Yesterday, two members of the New York State (NYS) Senate introduced Senate Bill 8518 (S8518).

Co-hosted by Liz Krueger (D) and Andrew Gounardes (D), S8518 provides for increased taxes to be paid based on the amount of energy used by state Bitcoin and digital asset miners.

The rates are as follows:

• 0 cents per kilowatt-hour (kWh) per kWh of less than 2.25 million kWh per year
• 2 cents per kWh per kWh per year, from 2.25 million to 5 million kWh
• 3 cents per kWh per kWh per year, from 5 million to 10 million kWh
• 4 cents per kWh per kWh per 10 to 20 million kWh per year
• 5 cents per kWh per kWh per year, over 20 million kWh

The proposed tax will not apply to miners who use renewable energy sources to enhance their facilities, as defined in Section 66-P of the NYS Public Services Act. Mining facilities must “not be operated in cooperation with electricity transmission facilities of electric companies,” according to the bill.

The bill also provides for subsidies to energy customers who register with NYS Energy’s Affordable Pricing Program using all taxes, interest and fines collected as a result of this potential law.

The introduction of the bill will take place approximately a year after the NYS digital asset mining moratorium expired. The moratorium banned digital assets mining that require the use of fossil fuels.

As Bitcoin mining companies are once again able to operate technically in the state, they will probably think twice about doing so.

The new bill is another of a series of bad regulatory proposals from NYS democratic lawmakers and bureaucrats that will prevent Bitcoin and crypto companies from establishing them in the NYS.

Rather than thinking about the jobs that Bitcoin mining can bring to New York, there are many cities and regions struggling with poverty in this post-industrial era, and Democrats seem deeper into sticking it on Bitcoin miners.