Georgia Bill To Allow Cryptocurrency Tax Payments

News, Regulation | February 26, 2018 By:

Two Georgia state senators have proposed a bill that would allow citizens to pay their state taxes with bitcoin and other cryptocurrencies.

Submitted on February 21 by senators Michael Williams and Joshua McKoon, Senate Bill 464 proposes that “the commissioner shall accept as valid payment for taxes and license fees any cryptocurrency, including, but not limited to, bitcoin, that uses an electronic peer-to-peer system.”

The bill stipulates that upon receiving a crypto tax payment, officials have 24 hours to convert the funds into fiat currency and credit the taxpayer’s account for the converted dollar amount. This would protect the state from any possible loss due to a decline in the value of cryptocurrencies over the day. It could result in a credit if the value went up.

Senate Bill 464 is similar to a bill currently making its way through the legislature in Arizona. The Arizona Senate passed a bill (SB 1091) earlier this month to allow residents in the state to pay their taxes with cryptocurrency. The measure has been submitted to the state’s House of Representatives for consideration.

Meanwhile, Wyoming is on the cusp of approving Senate Bill 111 that would exempt cryptocurrencies from the state’s property tax. If passed, it would include cryptocurrencies among a list of other intangible items that “shall be exempt from property taxation.” The bill defines cryptocurrencies as any type of digital representation of value that is used as a medium of exchange, unit of account or store of value, and is not recognized as legal tender by the US government.