Washington State Pioneers Tax Policy for Non-Fungible Tokens

Washington state plans to issue guidance specifying that non-fungible tokens, or NFTs, are subject to the state’s sales and business taxes, making it the first state to express views on the relatively new digital asset.

The state Department of Revenue will issue a guidance statement known as an “excise tax advisory” addressing the taxability of NFTs, unique digital assets stored on a blockchain. Until now the states have largely been silent on taxing NFTs, which have rocketed in popularity over the last year and serve as ...