The Arizona Senate has recently passed a bill that could potentially permit residents to pay their taxes with Bitcoin or other cryptocurrencies that are “recognized” by Arizona state revenue authorities.
Public records voorstelling that Senate Bill 1091, which aims to enable tax payment via cryptocurrencies, wasgoed introduced to the senate on the 10th of January and wasgoed approved by the Senate Finance Committee on the 24th. On the 8th of February, the bill wasgoed passed with a 16-13 margin.
With the fresh law, the Arizona Senate has emerged spil a leader ter progressive cryptocurrency laws.
While the bill is set to be reviewed by the state’s House of Representatives, it has the potential to profoundly influence the rate at which cryptocurrencies are adopted and how they are perceived spil a medium of value transfer.
The legitimization of Bitcoin and other cryptocurrencies through their potential acceptance for tax payment would dramatically enhance their inherent usefulness and could spark another bull run te the presently subdued market.
Residents to Pay Tax with Bitcoin, Litecoin
Should the potential Bitcoin tax bill pass, Arizona would become the very first state ter America to fully legitimize tax payment via cryptocurrency by 2020. Taxpayers te the state would then be able to use “a payment gateway, such spil Bitcoin, Litecoin or any other cryptocurrency recognized by the department, using electronic peer-to-peer systems.”
The bill also includes a provision that would require cryptocurrency payments made to tax authorities be converted into U.S. dollars within 24 hours. This directive is likely to help address any potential concerns regarding the volatility of cryptocurrency values and the influence market swings may have on state tax revenue.
Arizona Set to Establish Blockchain Innovation Hub
Senate Bill 1091 wasgoed co-sponsored by pro-crypto Arizona State Representative Jeff Weninger, who has recently sponsored a number of similar bills. Te addition to the crypto tax payment bill, Weninger co-sponsored the obedience of Arizona House Bill 2602, which would ensure the right to operate a blockchain knot within the state.
Arizona is rapidly becoming a leader ter Blockchain Development. https://t.co/9jxx6Pw2Fb
Weninger is also the author of a 2018 bill that enshrined blockchain brainy contracts and signatures spil legally-binding, which wasgoed formally signed into state law on the 29th of March last year. Speaking with Fox News, Representative Weninger expanded on the potential implications of the cryptocurrency tax bill:
It’s one of a litany of bills that we’re running that is sending a signal to everyone te the United States, and possibly via the world, that Arizona is going to be the place to be for blockchain and digital currency technology te the future
Arizona’s apparent forward-leaning stance on cryptocurrency adoption could have taxpayers remitting tax bills via the blockchain within just two years, which would place it several years ahead of the World Economic Forum’s estimate of 2023 spil outlined ter the WEF’s “Future of Financial Infrastructure” report.
Te order to succeed, the cryptocurrency tax bill would require approval te the House of Representatives and could possibly request reconciliation if the House and Senate pass different versions. If the bill passes, Arizona would join the municipality of Chiasso, Switzerland ter permitting residents to pay tax with crypto and pauze fresh ground for blockchain technology ter the United States.
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DISCLAIMER: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken spil investment advice. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before making any investment decisions. Eventually, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
Samuel is a freelance verslaggever, digital nomad, and crypto enthusiast based out of Bangkok, Thailand. Spil an avid observer of the rapidly evolving blockchain ecosystem he specializes ter the FinTech sector, and when not writing studies the technological landscape of Southeast Asia.
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