Arizona Passes Bill to Pay For Taxes In Virtual Currencies [Important]
The Arizona House of Representatives has passed a tax bill that will allow citizens to pay their taxes using virtual currencies. The Bill 1091 has been modified in order to satisfy everyone at the House of Representatives.
The main intention of the bill is to allow individuals to pay their tax liabilities in virtual currencies. Once the government receives the payment, it will convert the digital currency to US dollars in no more than 24 hours after the transaction is processed.
The Bill reads as follows:
“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.”
What surprises is that there is not a specific time when the study would begin or how long it would take for the department to make a determination. It is not clear if Arizona would allow tax officials to collect the payments in virtual currencies at a later date.
Back in April, Arizona’s governor, Dug Ducey, decided to sign a bill that legitimizes blockchain technology. The bill introduced by Rep. Jeff Weninger, would allow corporations to hold and share data on a blockchain.