Changes Proposed in Arizona Senate Bill on Crypto Transaction Taxes
While some pundits in the U.S. may be still skeptical about the future of cryptocurrencies, there is at least one state that wants to push ahead to make tax payments using Bitcoin (or similar tender) acceptable and welcome.
Arizona’s Senate had already passed a bill in February to accept cryptocurrencies for tax payments to the government. The bill is now being reworked and may be presented to the Senate with certain modifications.
If the changes are passed in the Senate, which appears to be most likely outcome, the state of Arizona could boast itself as being a progressive state, particularly compared to a state like New York, which has several restrictions in place.
Encouraging Blockchain Technology
The legislators behind this move to accept tax payments in cryptocurrencies explain that the state has to encourage the latest technologies that can be of use at different levels.
And blockchain technology, which is used to operate cryptocurrency transactions, can indeed be adopted for other constructive purposes.
Many countries across the world, while keeping Bitcoin transactions away, have given the green signal to investments in blockchain technology that can help governments in handling data and in making many policy decisions.
The Arizona Bill and the Changes Proposed
From the bill passed in February, the same set of Senators are bringing in a few amendments to place before the House shortly.
One of the significant alterations would be not to specify the cryptocurrency by name in the bill, leaving it to the discretion of the paying public to choose.
The conventional methods of paying in cash, credit or debit cards will also be available at the point of transaction. The tax named as Transaction Privilege Tax (TPT) can be settled by using any of the cryptocurrencies.
There is also the question of converting the currency back to US Dollars before it is remitted to the treasury. The changes being brought about in the original SB 1091 bill will leave the option to the state’s Department of Revenue officials to decide on the course of action they deem best for doing this conversion.
The bill may even permit the Revenue Department to throw it open to competition, where startups in the cryptocurrency exchange space may bid and win the right to do the conversion and ensure the state gets the maximum revenue through the conversion.
Other States Could Follow
The bill, though passed now, may come into force and become effective by 2020. Yet, it is a bold move and many other states in the U.S. may wish to study Arizona’s bill before making their own proposals.