Arizona Considering Accepting Tax in Crypto
In January, a bill was introduced to the Arizona Senate, which, if passed, would permit the State to receive tax payments in cryptocurrency.
The amendment to the current State legislature to tax payments proposes a payment gateway for Bitcoin and other cryptocurrencies that would allow the tax department to convert cryptocurrencies to their respective USD value – converted on the prevailing rate within 24 hours before being credited.
Arizona has already been proven open to technological advances: in late March 2017, a bill recognizing blockchain signatures and smart contracts has officially become state law. Also, Representative David Schweikert introduced a bill back in September of last year, which would make capital gains related to cryptocurrency transactions exempt from taxation for amounts under USD 600, but the House declined to include it as an amendment to the recently passed tax reform legislation. Schweikert, along with Jared Polis of Colorado, has also founded the Congressional Blockchain Caucus, a “platform for industry and government to come together to study and understand the implications of blockchain technology.”
However, the US government does not recognize any form of cryptocurrency as legal tender. Even though the bill does clarify that payments made in crypto would first be converted to the USD, but passing this bill may seem like the government has started accepting cryptocurrencies.
The news was received with skepticism on social networks, with Reddit user u/Ghostbustaj writing, “Sooo, [you’re] gonna send an address associated to you, directly to the IRS? Nawh, I’m good”.
The bill’s sponsors are State Senator Warren Petersen (primary), Senator Farnsworth, and Representatives Grantham and Weninger, all of the Republican Party. Currently, it is only known that the bill has made the rounds from the Senate FIN and Rules Committees and was read the second time on January 11.