Yesterday, two members of the Senate of the State of New York (NYS) introduced the law of the Senate 8518 (S8518), which imposes excise duties on digital activities mining using the mechanism of consent of the work tests, making even more difficult than it is already for Bitcoin miners to operate in the state.
S8518, which was co-sponsored by Liz Krueger (D) and Andrew Gounards (D), establishes that Bitcoin miners and digital activities in the state will pay the increased taxes based on the amount of energy they use.
The rates are as follows:
- 0 cents for Chilowattora (Kwh) for each kwh less than or equal to 2.25 million kWh per year
- 2 cents per kWh for each kwh between 2.25 and 5 million kWh per year
- 3 cents per kWh for each kwh between 5 million and 10 million kWh per year
- 4 cents per kWh for each kwh between 10 and 20 million kWh per year
- 5 cents per kWh for each kwh over 20 million kWh per year
The proposed taxes will not apply to miners who use renewable energy sources, as defined by section 66-P of the NYS public service law, to feed their structures. The mining structure should also “no [be] managed in combination with the transmission and distribution structures of an electrical company “, according to the account.
The bill also establishes that all taxes, interests and penalties collected following this potential law are used to subsidize energy customers registered in Nys energy convenience programs.
The introduction of this bill comes about a year after the expiry of the mining mining of digital activities of Nys. The moratorium prohibited any mining of digital resources that required the use of fossil fuels.
Now that Bitcoin mining companies can technically operate again in the state, they probably think twice to do so, since the increased taxes will probably make these companies try to create structures elsewhere in the United States.
This new bill is only another in a series of bad regulatory proposals by democratic legislators and NYS bureaucrats who disincentive the Bitcoin and Crypto companies to establish in NYS.
Instead of thinking about the works that the Bitcoin mining industry could lead to the state of New York, home to a number of cities and regions that suffer from poverty in this post-industrial era, the Democrats seem more infernal in blocking it to Bitcoin miners.