Indiana Proposes Crypto Bill for “Payment of Taxes with Virtual Currencies”
Indiana is the latest state to embrace virtual currencies as they make amendment in the bill to introduce cryptocurrencies as a means to pay taxes in. The synopsis of the bill reads,
“Payment of taxes with virtual currencies. Allows a person to pay taxes by using an approved virtual currency.”
According to the bill, the Section 20 states, “The OMB shall, as necessary, prescribe criteria for determining the exchange rate at any time between United States dollars and a virtual currency that is approved by the department of local government finance and the department of state revenue.”
Furthermore, the section 19 of the bill shares, “the department may approve the use of one or more virtual currencies to pay taxes, special assessments, penalties, interest, costs, or any other liability.”
Currently, a person may make a tax payment in cash, cashier’s check, money order, a debit card, credit card, or similar method along with a department approved electronic fund. And now, one or more virtual currencies that are approved by the department (currently not mentioned) can be used to pay taxes.
The department will also have to issue a receipt from the tax payment made in virtual currency just like in the case of currency.
States Increasingly Embracing Virtual Currencies
Just recently, New Hampshire joined the likes of Ohio that became the first state to legalize tax payments in crypto. Now, New Hampshire introduced a bill on January 3 that stated,
“The plan shall address any accounting, valuation and management issues and also identify an appropriate third party payment processor that will process cryptocurrency transactions at no cost to the state. The State Treasurer is required to submit the plan to the Governor, House, and Senate by November 1, 2019.”
The bill further mentioned,“Tax payments received by the state would need to be converted to U.S. dollars or alternatively, mitigate such risk by continually monitoring cryptocurrency levels held by the state to ensure there is as much demand for state payments to vendors and payees as the state has in its ‘inventory’.”
Another case has been of Wyoming that introduced a bill whose focus is on clarifying the legal position of digital assets into categories viz. Virtual Currencies that get the same treatment as of money within the state, digital assets, and digital securities.
This development would work in the advancement of cryptocurrencies that currently operates in a grey regulatory area in the US. Another notable development is in regards to crypto custody where Wyoming could establish:
“an opt-in framework for banks to provide custodial services for digital asset property as directed custodians.”