Arizona’s Plan to Accept Tax Payments in Cryptocurrency, Undergoes Setback

Arizona’s Plan to Accept Tax Payments in Cryptocurrency, Undergoes Setback

Cryptocurrency News
May 4, 2018 by Sandra Onyeiwu
1504
Arizona’s Plan to Accept Tax Payments in Cryptocurrency, Undergoes Setback Earlier in February it was reported that officials in the state were looking to allow citizens to pay their taxes using cryptocurrencies. Whilst the Arizona House of Representatives did indeed pass a bill that would allow citizens to pay taxes using cryptocurrencies, it now turns
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Arizona’s Plan to Accept Tax Payments in Cryptocurrency, Undergoes Setback
Earlier in February it was reported that officials in the state were looking to allow citizens to pay their taxes using cryptocurrencies.

Whilst the Arizona House of Representatives did indeed pass a bill that would allow citizens to pay taxes using cryptocurrencies, it now turns out that amendments have been drafted.

Arizona’s crypto tax bill no longer enables the Department of Revenue to collect taxes in cryptocurrency, but rather directs it to conduct a study.

The bill, which was passed by the Arizona State Senate on 8th of February, would allow residents of Arizona to pay their state taxes with cryptocurrency. The state government would then convert the digital currency payments to US dollars within 24 hours of their receipt.

Instead of actually accepting crypto payments, the new text simply requires the House to consider doing so.

As the bill explains further:

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 bill does not define when this study would begin or how long it might take for the results to be compiled into a report. And it’s unclear if Arizona would allow its tax officials to collect payments using cryptocurrencies at a later date.

 

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