A bill that would allow residents in Arizona to pay their taxes in cryptocurrency cleared hurdles in a key committee in the state’s House of Representatives.
Senate Bill 1091, sponsored by Republican Senator Warren Petersen, passed the Upper chamber on February 8.
The Rules Committee of the Arizona House Monday approved the Bill with amendments, paving the way for a full House vote.
If passed, Arizona will become the first state in the United States to officially accept cryptocurrency as mode of payment.
The law would empower the Arizona Department of Revenue to collect taxes in the form of cryptocurrency.
The Bill, titled “Income tax payments; bitcoin,” proposes to amend an existing Act by adding a sub-clause to section 43-505 relating to income tax payments.
“A taxpayer may pay their income tax liability using a payment gateway, such as bitcoin, litecoin or any other cryptocurrency recognized by the department, using electronic peer-to-peer systems. The department shall convert cryptocurrency payments to United States dollars at the prevailing rate after receipt and shall credit the taxpayer’s account with the converted dollar amount actually received less any fees or costs incurred by the department for conversion.”
Arizona is ahead of other US states in adopting blockchain technology for multiple uses in its financial sector.
Data stored and shared on a blockchain was given legal validity in Arizona after Governor Doug Ducey signed a Bill to this effect earlier this month.
Georgia had considered a proposal to accept cryptocurrencies as a form of payment, but failed to pass through its Senate due to misunderstandings among lawmakers.
New Hampshire was the pioneer in making a legislative move to allow its citizens to pay their taxes in crypto. But the state’s House of Representatives shot it down in a January 2016 vote.
Bills aimed at evaluating blockchain applications for data storage purposes are pending in the legislatures of Nebraska and New York.
by Joji XavierRTTNews Staff Writer
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