Marvin A. Kirsner, of Greenberg Traurig LLP, has have made available for download his article, “State Sales Tax on Sale of Non-Fungible Tokens (NFTs) – Questions and Answers,” published in Greenberg Traurig Alert. The abstract is as follows:
Non-fungible tokens (NFTs), which can be used as a medium for art, music, video clips, trading cards, and other collectibles have recently become hot investments. Although no state tax agency has specifically announced that NFTs are subject to sales and use tax yet, some states already have the statutory framework in place to impose their sales tax on NFTs. Furthermore, selling NFTs to a buyer in a different state could result in a state income tax filing requirement. This GT Alert contains some questions and answers to address the state tax issues of NFTs so that sellers and investors might be aware of the potential state tax consequences.
Posted by Jessica Ji, Associate Editor, Wealth Strategies Journal.