Arizona House of Reps Blocks Acceptance of Senate Crypto Tax Bill

Arizona’s Cryptocurrency Tax Bill Sees Rollback On Crypto Acceptance

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  • Arizona House of Reps blocks a Senate tax bill that would allow citizens to pay their taxes using cryptos.
  • The House of Reps suggested considering alternative forms of payment.

United States: According to 2nd May public records, the Arizona House of Reps passed Senate Bill 1091, a tax bill that would permit Arizonans to pay their taxes using digital currencies. However, following the recent vote, this idea has been blocked with amendments.

The directive aimed at Arizona’s Department of Revenue would have allowed the acceptance of cryptocurrencies as payment methods for taxes. The Senate Bill 1091, which passed the Arizona State Senate on 8th February would enable residents of Arizona to pay their state taxes with cryptocurrency. Arizona would then convert these cryptocurrencies into US dollars within 24 hours of their receipt.

Instead of openly permitting the receipt of cryptocurrencies for taxes, the House of Reps simply compelled the Department of Revenue to consider accepting alternative forms of payment. According to the amended bill:

“The department shall study whether a taxpayer may pay the taxpayer’s income tax liability by using a payment gateway, such as Bitcoin, Litecoin or any other cryptocurrency that uses electronic peer‑to-peer systems. The department shall study the conversion of cryptocurrency payments to United States dollars at the prevailing rate after receipt and shall study the process of crediting the taxpayer’s account with the converted dollar amount actually received less any fees or costs incurred by the department for conversion.”

The terms used in the amendment does not explicitly state when such a study would commence, or the time period it would take for the department to make a determination. Moving forward, legislators from both the state Senate and House will negotiate the terms of the bill.

Some states in the US have considered and passed a bill concerning digital currencies and blockchain tech. for instance, Wyoming passed a group of bills that created a new asset class for cryptocurrency in the state, among other measures. Georgia and Illinois are presently considering legislation that would allow crypto for taxes and license fees.

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