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ARIZONA SENATE APPROVES BILL TO ALLOW PAYMENT OF TAXES IN BITCOIN

The Arizona Senate in the United States passed a bill on February 8 to allow state residents to pay their taxes with cryptocurrencies, according to public records.


Senate bill 1.091, which seeks to enable the use of cryptocurrencies for the payment of taxes, was presented on January 10, 2018, and approved on January 24 by the Senate Finance Committee for a total of votes of 4-3. On February 8, the Senate approved the bill by 16 votes in favor, 13 against, and one null vote.


The bill has now been sent to the Arizona House of Representatives. If approved, Arizona would become the first State in the United States to accept cryptocurrency tax payments by 2020, as indicated in the public record. The bill would allow state taxpayers to use "a payment method, such as Bitcoin, Litecoin or any other cryptocurrency recognized by the department, using peer-to-peer electronic systems".


According to the bill, the Arizona Department of Revenue, upon receiving payments in cryptocurrencies for "taxes and any interest and penalties," would be obligated to convert the payments to US dollars within the next 24 hours.


The Republican representative of the State of Arizona, Jeff Weninger, who co-sponsored the bill, said the fiscal measure is intended to turn the State into a center of "Blockchain and digital currency technology in the future." Referring to the tax bill, Weninger told him this week:

The implementation date is not until 2020, which would give the Revenue Department time to determine which currencies it will accept and how it will make the change to US dollars.

Petersen said that because the Revenue Department will only credit taxpayers with the value of Bitcoin after converting it to dollars, there is no risk to the State.

"Even if for some reason the state does not receive what was sent, the State will only give it credit for what was received," Petersen said.

Petersen said that Farley was only telling one side of the story.

"What the good senator did not mention, it is true that he has fallen ... he forgot to mention that he has increased 4,000 percent," said Petersen.


At a January 24 Finance Committee hearing, Petersen said the bill was necessary to give taxpayers options. Petersen said:

In September 2017, Cointelegraph informed that the municipality of Chiasso, Switzerland will allow its residents to pay taxes in Bitcoin from January 2018, following the example of Zug.

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