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NFT Boom Raises Pressure For States to Move Quickly on Tax Rules

April 21, 2022, 7:42 PM

State revenue agencies need to “dig in” on the tax treatment of nonfungible tokens, or NFTs, in response to surging sales and the total lack of guidance so far, a Multistate Tax Commission attorney said Thursday.

Richard Cram, director of the intergovernmental tax agency’s national nexus program, gave a presentation on the exploding market for NFTs, unique digital assets that serve as certificates of authenticity for digital works of art, music, tickets, and collectibles. While few people had even heard of NFTs prior to 2021, Cram said monthly global trading volume crossed $5 billion in January.

Many of these transactions ...