Arizona Senate has passed a bill that paves the way for the residents of that state to pay their taxes through Bitcoin and other crypto currencies.
The Bill 1091, which aims to provide the legal framework for paying taxes in crypto currencies, was introduced in the Senate on January 10. It was approved by the Senate Finance Committee on January 24 and on February 8, the bill was passed successfully with a 16-13 margin.
Arizona State Representative Jeff Weninger, who is a co-sponsor to the bill, said the primary aim was to foster technological innovation in the state. Weninger told Fox News
“sending a signal to everyone in the United States and possibly throughout the world that Arizona is going to be the place to be for block chain and digital currency technology in the future.”
The bill is now reviewed by the state’s House of Representatives. If the bill passes, then it would make Arizona the first state in the US to allow residents to pay taxes in crypto currencies. Notably, Chiasso, a municipality in Switzerland is already accepting tax payments in crypto currencies.
Impact On Cryptocurrencies From Arizona’s Bill:
Skeptics always argue that crypto currencies will have little use in real-world. Accepting tax payments by a state will break the myth and lead to wider adoption. It may spark another rally in Bitcoin and major crypto currencies. The bill allows the tax authorities to convert cryptos into US dollar in 24 hours. The directive clears concerns about the impact of volatility on the state’s tax revenue.
Impact on Arizona:
Going forward, Arizona will lead other states in crypto currency adoption. Weninger has also sponsored another bill (Arizona House Bill 2602), which would legalize the operation of block chain nodes within the state. That means, the bill can eventually make Arizona to be at the forefront of block chain technology related investments in the country.
The results of the bill will be known only in 2020. Still, a successful clearance of the bill will certainly trigger similar announcements by other states in the US.