Bloomberg Tax
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Tax
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

Pennsylvania Option to Retroactively Tax NFTs a Legal Minefield

June 28, 2022, 8:55 PM

Pennsylvania contends it could reach back as far as six years to tax nonfungible tokens, or NFTs, but such an aggressive, retroactive policy could trigger litigation.

While Pennsylvania’s sales tax rules never expressly mentioned the NFT slice of the digital economy until last month, a spokesman for the Department of Revenue said the state has had authority to apply its 6% sales and use tax to NFTs since Act 84, an omnibus tax reform law was implemented in 2016. Among other things, the law extended the sales tax to digitally delivered tangible personal property and streaming content, including music, ...