Martin Eisenstein and Jamie Szal’s Article on Taxation of Blockchain Featured in Tax Notes State

The April 7, 2022, cover article for Tax Notes State is by managing partner Martin Eisenstein and partner Jamie Szal, who write on how to “Step into the Brave New SALT World of Blockchain” (subscription required). After discussing what Blockchain and NFTs are, they dive into an analysis of how these technologies might fit (or not) into existing structures of state and local taxation. They consider whether and how blockchain transactions might be taxable; whether cryptocurrency is a currency for tax purposes; whether NFT sales are taxable; whether online auction sites offering NFTs are marketplace facilitators; and how old constitutional principles might apply to this new breed of transactions.