Arizona Legislature Mulls Cryptocurrency Tax Payments Bill

Blockchain, FinTech, News, Regulation | February 14, 2018 By:

Arizona is considering a bill that would make it the first US state to accept tax payments in digital currency.

The state’s Senate passed a bill that would allow payment of state income taxes to the state’s revenue authorities. The bill now moves to the Arizona’s House of Representatives for consideration. If it passes there, it would be sent to the state governor to be signed into law.

The bill calls for the Arizona Department of Revenue to convert the received cryptocurrency into US collars within 24 hours of receiving it.

“The ease of use, being able to do it in the middle of the night, being able to do it at home while you’re watching TV … I think in a few years this isn’t even going to be a question,” said Arizona state Rep. Jeff Weninger, the bill’s sponsor.

Arizona has been among the states most favorable to blockchain and cryptocurrency innovations.  Arizona governor Doug Ducey last year signed into law a bill that makes blockchain signatures legally binding in his state, allowing smart contracts to be held as legal documents. That bill was also sponsored by Weninger.

The state-funded University of Arizona has also instituted a major blockchain research center.