Arizona is heading with the idea of accepting tax payments in cryptocurrencies – but there’s been a drawback.
It is definitely one of the USA’s most progressive state. Back in February, it was reported that officials in the state were looking to allow citizens to pay their taxes using cryptocurrencies.
As state representative Jeff Weninger said at the time, “it’s one of the a litany of bills that we’re running that is 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 blockchain and digital currency technology in the future”.
Yet problems have arises.
Whilst the Arizona House of Representatives did indeed pass a bill that would allow citizens to pay taxes using cryptocurrencies, it now turns out that amendments have been drafted in that have taken the edge off things.
Instead of actually accepting crypto payments, the new text simply requires the House to consider doing so.
The core piece of text reads:
“The department shall study whether a taxpayer may pay the taxpayer’s income tax liability by using a payment gateway, such as Bitcoin, Litecoin or any other cryptocurrency that uses electronic peer‑to-peer systems. The department shall study the conversion of cryptocurrency payments to United States dollars at the prevailing rate after receipt and shall study the process of crediting the taxpayer’s account with the converted dollar amount actually received less any fees or costs incurred by the department for conversion,”
No timescales are mandated in the bill that was passed, which leaves things slightly in limbo.
Arizona has thus far attracted global praise for its willingness to embrace cryptocurrency, at a point when many legislative bodies are being cautious. This may, therefore, just be a temporary blip.
The world is just waiting for further development on the matter and how Arizona will respond to the growing and immense popularity of cryptocurrency.