Arizona’s Bid to Accept Cryptocurrency for Taxes Suffers Setback
The State’s House of Representatives cleared Arizona’s digital currencies tax payments bill, however with a caveat: it is now almost entirely different.
Public records reveal that Arizona House of Representatives passed Senate Bill 1091 on 30th April by a 43-14 vote. That comfortable passage aside, the measure is presently starkly from the one submitted initially and later passed in the Arizona Senate.
Presently, the two chambers enter talks to settle the differences, with lawmakers from the House and the Senate being named to initiate the task.
By far the most significant change is that the mandate aimed at Arizona’s Department of Revenue which would have opened the way for it to acknowledge digital currency as payment for tax liabilities has been walked back.
If executed as-is, the House version would only require the department to study the issue “may develop, adopt and use a payment system that allows the immediate remittance and collection of tax in real time at the point of sale, including payments of additional amounts after the audit.”
As the bill clarifies 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 digital currency that uses electronic peer-to-peer systems. The Department shall study the conversion of Digital currency 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 received less any fees or costs incurred by the Department for conversion.”
The bill does not specify when this study would start or how long it might take for the results to be consolidated into a report. It is further unclear whether Arizona would enable its tax officials to collect payment using digital currencies at a later date.
Senator Warren Petersen’s office didn’t reply immediately to a request for remark.