Nevada Blockchain Tax Nix Becomes Law

Announcements, Blockchain, Innovation, News, Regulation | June 7, 2017 By:

A bill that would block taxation restrictions on the use of the blockchain technology has been signed by Nevada Gov. Brian Sandoval.

First introduced in March by Senator Ben Kieckhefer, the Nevada Senate Bill 398 aims to create a legal basis for the use of blockchain technology under state law. The bill received full backing from Nevada senators in April, advancing the bill to a 21-0 vote as they voted to recognize the blockchain tax bill.

Nevada Senate Bill 398 prohibits a local government from: (1) imposing a tax or fee on the use of a blockchain; (2) requiring a certificate, license or permit to use a blockchain; and (3) imposing any other requirement relating to the use of a blockchain.

The bill also proposes a blockchain or a smart contract to be deemed as an electronic record, noting that “if a law requires a record to be in writing, submission of a blockchain which electronically contains the record satisfies the law”.