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AB9086 Summary:

BILL NOA09086
 
SAME ASSAME AS S07272
 
SPONSORKelles
 
COSPNSRGalef, Simon
 
MLTSPNSR
 
Amd §73-a, Pub Off L
 
Relates to reporting of cryptocurrency holdings on the annual statement of financial disclosure filed with the legislative ethics commission or the joint commission on public ethics.
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AB9086 Actions:

BILL NOA09086
 
01/31/2022referred to governmental operations
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AB9086 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9086
 
SPONSOR: Kelles
  TITLE OF BILL: An act to amend the public officers law, in relation to reporting of cryptocurrency holdings on the annual statement of financial disclosure   PURPOSE: The purpose of this bill is to close the loophole on cryptocurrency assets on the state's financial disclosure statement and add transparen- cy regarding individuals' interest in this type of digital financial property.   SUMMARY OF PROVISIONS: A new paragraph 16-a is added to subdivision 3 of section 73-a of the public officers law to require the reporting of type and market value of cryptocurrencies held by the reporting individual, in excess of $1,000 at the close of the taxable year prior to the date of filing. For purposes of the bill, "cryptocurrency" is defined as a digital currency in which encryption techniques are used to regulate the gener- ation of units and currency and verify the transfer of funds, operating independently of a central bank.   JUSTIFICATION: In 2014 the Internal Revenue Service (IRS) ruled that the first non-cen- tral bank digital cryptocurrency, known as bitcoin, be treated as prop- erty for tax purposes. This meant that bitcoin would, henceforth, be subject to capital gains tax. In July 2019, the IRS started sending letters to cryptocurrency owners warning them to amend their returns and pay taxes. Additionally, academic research has shown that bitcoin has some characteristics more like the precious metals market than tradi- tional currencies, signaling agreement with the IRS decision even if based on different reasons. Source: https://en.wikipedia.org/wiki/Cryptocurrency Because cryptocurrency transactions can be made anonymously, they are difficult to track and to regulate. They are increasingly popular tools for cybercrimes and "ransomware," a kind of digital hijacking. The recent shutdown of the Colonial natural gas pipeline in the US southeast was an international cyberattack by hackers who demanded payment via cryptocurrency. This type of digital asset is designed to work as a medium of exchange of units called "coins". The coins are stored in a ledger existing in a form of a computerized database and is called a "blockchain". Cryptocurrency does not exist in physical form (like paper money) and is typically not issued by a central authority. Bitcoin is the first decentralized cryptocurrency. Since the release of bitcoin, many other cryptocurrencies have been created.   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: January 1st after enactment
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AB9086 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9086
 
                   IN ASSEMBLY
 
                                    January 31, 2022
                                       ___________
 
        Introduced by M. of A. KELLES -- read once and referred to the Committee
          on Governmental Operations
 
        AN  ACT  to  amend  the public officers law, in relation to reporting of
          cryptocurrency holdings on the annual statement of  financial  disclo-
          sure
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivision 3 of section 73-a of the public officers law is
     2  amended by adding a new paragraph 16-a to read as follows:
     3    16-a. List below the type and market value of cryptocurrencies held by
     4  the reporting individual or such individual's spouse in EXCESS of $1,000
     5  at the close of the taxable year last occurring prior  to  the  date  of
     6  filing.  Whenever an interest in cryptocurrencies exists through a bene-
     7  ficial interest in a trust, the  cryptocurrencies  held  in  such  trust
     8  shall  be  listed ONLY IF the reporting individual has knowledge thereof
     9  except where the reporting  individual  or  the  reporting  individual's
    10  spouse  has  transferred  assets to such trust for his or her benefit in
    11  which event such cryptocurrencies shall be listed unless  they  are  not
    12  ascertainable  by  the reporting individual because the trustee is under
    13  an obligation or has been instructed in  writing  not  to  disclose  the
    14  contents  of the trust to the reporting individual.  Cryptocurrencies of
    15  which the reporting individual or the reporting individual's  spouse  is
    16  the  owner of record but in which such individual or the reporting indi-
    17  vidual's spouse has no beneficial interest shall  not  be  listed.  Also
    18  list  cryptocurrencies  owned  for  investment purposes by a corporation
    19  more than fifty percent  (50%)  of  the  stock  of  which  is  owned  or
    20  controlled  by the reporting individual or such individual's spouse. For
    21  the purposes of this item the term "cryptocurrency" shall mean a digital
    22  currency in which encryption techniques are used to regulate the  gener-
    23  ation  of units and currency and verify the transfer of funds, operating
    24  independently from a central bank.
 
    25                                          Category of
    26                                          Market Value
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11844-01-1

        A. 9086                             2
 
     1                                          as of the close
     2                                          of the taxable
     3                                          year last
     4                                          occurring
     5                                          prior to
     6    Self/        Type of                  the filing of
     7    Spouse       Cryptocurrency           this statement
     8                                          (In Table II)
     9  _______________________________________________________________________
    10  _______________________________________________________________________
    11  _______________________________________________________________________
    12  _______________________________________________________________________
    13  _______________________________________________________________________
    14    §  2. This act shall take effect on the first of January next succeed-
    15  ing the date upon which it shall have become a law.
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