by Ali Raza
May 7, 2018
Arizona introduces the new Bill
A new development in Arizona might see the recent decision made by the House of Representatives stymied with amendments. The vote was in favor of a tax Bill that would allow this state’s citizens to use digital currencies to pay the taxes.
This decision would have helped open door for broader adoption of cryptocurrencies, starting with their use for the tax payment.
The Bill was first passed on February 8 of this year by the Arizona State Senate. The new method of paying taxes would include cryptocurrencies, which the government would be able to convert to US dollars. The conversion would be relatively quick, completing within 24 hours.
The House revision chose not allow the use of cryptos for tax payment. Instead, they compelled the Department of Revenue to research and consider the possibility of accepting other forms of payment.
How does the Bill treat cryptocurrencies?
According to the Bill itself, the department will have to study the possibility of taxpayers providing their payments through cryptocurrencies such as Litecoin, Bitcoin, or other coins that utilize P2P blockchain systems. It continues to add that the department will have to keep in mind the conversion of digital currencies to US dollars, and any fees or slippage involved. Finally, the bill says that the department will also have to study the process of crediting the accounts of the taxpayers with the dollar amount received after the conversion.
It is important to note that the amendment did not define when these studies may start, nor how long would they last. More negotiations between the legislators from the House and those from the state Senate can be expected at some point in the future.
It is not the first time that one of the US states has decided to consider adoption of digital currencies. In fact, there have been several others that have not only considered, but also passed different legislation, in regard to blockchain technologies and digital currencies alike.
Wyoming, for example, decided to pass an entire group of Bills. They targetted several measures, including the creation of a new asset class for cryptocurrencies. Illinois and Georgia are also working on preparations of legislation that would allow their citizens to use cryptocurrencies for license fees and tax payments.
All in all, it seems that cryptocurrencies are slowly finding their way to official use in the US, one state at the time.