A key committee in the Arizona House of Representatives passed SB 1091, a recently introduced bill that would allow Arizona residents to pay their state taxes with a variety of cryptocurrencies.
The bill has come a long way from when it was first introduced to the Arizona State Senate on February 8th, and the House Rules Committee voted to approve the measure this past Tuesday, April 24th. Arizona’s laws require that all bills pass through three readings, starting with the Senate, then the House Committee, and ultimately the House Floor. The bill will be presented on the House floor in the coming months for a final vote.
If passed, the bill would allow the Arizona Department of Revenue to collect tax payments in the form of cryptocurrency, and then would immediately convert it to USD.
Originally, the bill stated that residents could pay their taxes exclusively in Bitcoin, but revisions to the draft have made it so that a number of altcoins, including Litecoin and other “recognized” digital currencies could be used.
Arizona’s government has been introducing and passing multiple pieces of legislation pertaining to blockchain and cryptocurrency. In 2017, Arizona legally recognized Blockchain signatures as well as the enforceability of smart contracts. They also signed into law a bill that allows corporations to hold and share data on a distributed ledger.
Other states are trying to incorporate cryptocurrencies into their tax system as well, with Illinois considering a bill very similar to that of Arizona’s. Georgia’s government also voted on a similar bill, but it stalled due to a lack of understanding in the digital technology from state lawmakers.
States across the US have been making advancements in recognizing and legitimizing cryptocurrency. Wyoming recently passed a series of legislation that exempts cryptocurrencies from state property taxation. California also has advanced legislation that would allow corporations to record information like stock ownership and transfers on distributed networks.