A bill introduced in the Arizona senate, if passed, might make the state the first US State where you can pay your taxes using Bitcoins or other cryptocurrencies. However it must be kept in mind that a bill needs to be approved by a majority in the senate to become a law. As of now it is just a plan of action which is yet to be officially discussed.
This bill which will allow you to pay taxes via cryptocurrencies was drafted by Arizona Senator Warren Peterson who has the support of three other senators. The bill was originally submitted on the 9th of January. If this bill becomes a law, Arizona residents will be able to pay their taxes, as well as any other interests or penalties owed to the state using “a payment gateway, such as bitcoin or other cryptocurrency, using peer-to-peer systems”
The bill reads: “The Department [of Revenue] shall convert cryptocurrency payments to United States dollars at the prevailing rate within twenty-four hours after receipt and shall credit the taxpayer’s account with the converted dollar amount.”
While the bill sounds rather exciting, this is not the first time that such an idea has been proposed in a US state senate. Back in 2016, a similar idea was taken up in the New Hampshire senate. However, back then it was rejected due to reasons citing volatile nature of the price of cryptocurrencies.
However, there’s still hope that Arizona might be a state which may pass this bill. This is primarily because there have been some blockchain related technologies that the Arizona Senate has approved in the past.
In the spring of 2017, Arizona Senate had passed a bill which recognizes blockchain signatures and smart contracts as valid under state law. If this bill too, gets passed – this would be a first for any government in the world – giving a major boost to the credibility of cryptocurrencies and will be an example for other governments across the world.