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Arizona sees Roadblocks in Accepting Bitcoin as Tax Payments

Arizona Sees Roadblocks in Accepting Bitcoin as Tax Payments

There are both for and against bitcoin or any other digital coin for being used as a means of tax payment. For instance, New York is busy in framing guidelines that could stifle innovations for the blockchain-associated digital currency’s ecosystem. On the other hand, Arizona is regarded as State for supporting the virtual currency sector since it sees distributed ledgers technology more closely. The state needs to address issues before it can start accepting bitcoin or any other digital coin for payment of taxes.

Bill Passed

It was on February 8 that the State of Arizona has passed the Senate Bill 1091, btcmanager reported. The public records showed that the bill was originally launched on January 10 by some lawmakers. The Senate Finance Committee has given its approval with the voting of 4-3 on January 24. Following this, the bill was passed on to the House of Representatives of the State for further approval. The objective is to allow residents to pay their taxes either through bitcoin or any other digital currencies. The bill enabled the recognition of using electronic peer-to-peer systems by the department. Taxes could be paid through a payment gateway like litecoin or bitcoin or any other digital coins.

Co-sponsor of the bill, Jeff Weninger, said, “It’s one of a litany of bills that we’re running that is sending a signal to everyone in the United States, and possibly throughout the world, that Arizona is going to be the place to be for blockchain and digital currency technology in the future.”

However, reports came in on April 6 that the original bill was somewhat tweaked a bit. This was meant to be more doubtful in respect of particular digital currencies, which could be used for remitting taxes. The co-sponsor of February bill later indicated that he had made some changes with the permission of Senator Petersen. This resulted in the bill being more doubtful in respect of some particular virtual currencies. However, he hinted that it was up to the department of revenue to identify the doubtful names of specific cryptocurrencies.

On April 30, the Representatives of the House have passed the Senate Bill 1091 as a law. The public records showed that there were 43 votes in favor and 14 against the bill. In any case, the enacted bill was not the same that was originally intended and that the current bill is totally different from the original document. The Senate has given its approval for the original document too.

Salvage The Situation

As a result, the State of Arizona is totally in a state of chaos in respect of accepting digital coin as means of payment for taxes. However, the Senate and the House of Representatives are working closely to reach an understanding that is meant to salvage the present situation. The main argument is that the original bill enabled accepting cryptocurrency for tax payment. On the other hand, the Senate passed the bill has pushed the process back. As a result, it is now nearly impossible to implement the bill in its present forms.

About the author

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Fred Krueger

Fred is a successful entrepreneur and investor. His passion to share his knowledge and to analyse the highly unregulated cryptocurrency market brought him here. His experience gives him a strategic edge amongst others.