Arizona State Planning to Accept Virtual Currencies as Tax PaymentsFeb 12, 2018 at 9:42
In order to adapt with the ever growing popularity of cryptocurrencies globally, the Arizona Senate passed a bill allowing residents in the state to pay taxes with virtual currencies.
The proposal was introduced January 10, 2018 and passed by the Senate Finance Committee by a 4-3 vote. On February 8, the Senate passed the bill by a 16-13 margin, with one no-vote and currently sent to Arizona’s House of Representatives.
If the bill is adopted, Arizona would become the first state in the U.S. to accept cryptocurrency tax payments by 2020. It will allow taxpayers of the state to use “a payment gateway, such as Bitcoin, Litecoin or any other cryptocurrency recognized by the department, using electronic peer-to-peer systems.”
Under the bill, the Arizona Department of Revenue will be obligated to convert the cryptocurrency payments to U.S. dollars within 24 hours upon receiving payments in crypto for tax and any interest and penalties.
Arizona State Republican representative, Jeff Weninger, who co-sponsored the bill, noted that the measure aims to turn the state into a center of blockchain and digital currency technology in the future.
“It’s one of a litany of bills that we’re running that is sending a signal to everyone in the United States, and possibly throughout the world, that Arizona is going to be the place to be for blockchain and digital currency technology in the future,” he expressed in an interview with Fox News.
Earlier, the municipality of Chiasso, Switzerland also expressed its intentions to enable residents to pay taxes in Bitcoin starting January 2018, following the lead of Zug.