Once a Major Supporter of Blockchain Technology, Arizona May Impose Bill That Taxes Development
Arizona has passed multiple bills in the last few months that have promoted the blockchain, like HB 2417 in March 2017. This bill essentially legalized the use of blockchain technology for signatures in electronic documents, stating that the legality cannot be denied in any case. Following an April 2017 bill to use blockchain to track gun registration, they passed two more bills a year later that outlined “virtual coin offering” regulations.
A newly proposed bill in Arizona, HB 2702, would amend the former bill, adding to a former definition of a “marketplace facilitator, adding any company that provides “a virtual currency that buyers are allowed or required to use to purchase products from the seller.” As such, they would be subjected to a sales tax from retailers without “a physical presence in their state.”
Attention was brought to the changes proposed in the bill by Caitlin Long, a Wall Street veteran and supporter of crypto, on Twitter. She posted a reply to Drew Hinkes. Hinkes started the conversation, saying,
“#Arizona, come on down! You're the next state to propose a bill to impose sales tax on marketplace facilitators who require/allow #virtualcurrencies to be used by purchasers to buy products from sellers. Includes the broad ‘software development’ clause flagged by @CaitlinLong”
In response, Long said,
“ANOTHER ONE—UGH!!! #Arizona was previously one of the #blockchain friendliest US states, but if this bill becomes law it will join #RhodeIsland & #NewYork as the worst. HOW DARE YOU TAX SOFTWARE DEVELOPMENT AND R&D??? #idiotic”
In the past, Long has supported regulating and legalizing blockchain regulations at a state level. Rhode Island recently introduced a potential bill that will require taxation on blockchain technology progress.
Long has been working within Wyoming to create a more welcoming climate for cryptocurrency and blockchain technology, and it is clear that she sees the actions in Rhode Island as being completely against that. Referencing the proposal on Twitter a few days ago, she says that the proposal on taxes is “so broad that it includes taxing software development and + R&D. Get out of states that show by actions they don’t want #blockchain cos & come to #Wyoming where we do!”
ANOTHER ONE—UGH!!! #Arizona was previously one of the #blockchain friendliest US states, but if this bill becomes law it will join #RhodeIsland & #NewYork as the worst. HOW DARE YOU TAX SOFTWARE DEVELOPMENT AND R&D??? #idiotic @propelforward @Tyler_Lindholm https://t.co/x4AvIdVt8g
— Caitlin Long 🔑 (@CaitlinLong_) February 12, 2019