Arizona Senate Passes Bill To Allow Tax Payments In Bitcoin

Authored by Helen Partz via CoinTelegraph.com,

The Arizona Senate passed a bill on Feb. 8 to allow residents in the state to pay their taxes with cryptocurrencies, public records indicate.

The Senate Bill 1091, which intends to enable cryptocurrencies for tax payment, was introduced Jan. 10, 2018 and passed by the Senate Finance Committee by a 4-3 vote on Jan. 24. On Feb. 8, the Senate passed the bill by a 16-13 margin, with one no-vote.

The bill has now been sent to Arizona’s House of Representatives.

If the bill is adopted, Arizona would become the first state in the U.S. to accept cryptocurrency tax payments by the year of 2020, as stated on the public record. The bill would allow taxpayers of the state to use “a payment gateway, such as Bitcoin, Litecoin or any other cryptocurrency recognized by the department, using electronic peer-to-peer systems.”

According to the bill, the Arizona Department of Revenue, upon receiving payments in crypto for “tax and any interest and penalties”, would be obligated to convert the cryptocurrency payments to U.S. dollars within 24 hours.

Arizona State Republican Rep. Jeff Weninger, who co-sponsored the bill, said the tax measure intends to turn the state into a center of  “blockchain and digital currency technology in the future”. Referring to the tax bill, Weninger told Fox News this week:

"It's one of 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."

In September, 2017, Cointelegraph reported that the municipality of Chiasso, Switzerland will enable its residents to pay taxes in Bitcoin starting January 2018, following the lead of Zug.

Comments

Sages wife Baron von Bud Feb 11, 2018 12:10 PM Permalink

I still don't understand why the 'fantasy cyber illusion of coins' is a better candidate for currency than gold. What advantage does it enjoy that Au or Ag do not? Why did we need to manufacture an illusory concept to attach value to? How does the general public benefit from this dubious distinction? Ease, speed, and confidentiality of transactions falls short because purely anonymous trade is not, and WILL NEVER BE, permitted. Whatever the purpose, it is not for the convenience or security of the mark/user but of the casino/overseer. Ultimately, it will be about taxation; and you won't be voting on it.

In reply to by Baron von Bud

Dsyno Sages wife Feb 11, 2018 12:37 PM Permalink

Gold definitely has its place... a huge, and valuable place. But to answer your question: Ever try to send gold through the Interwebs?

Gold and crypto each have their own advantages/disadvantages. They each do something better than the other.

Imagine trying to flee a corrupt country with your horde of gold. Hard as hell. Now imagine doing that with bitcoin.

In reply to by Sages wife

whatswhat1@yahoo.com Mr_Potatohead Feb 11, 2018 12:08 PM Permalink

Team PPT could easily step in at anytime and stabilize the violent swings in Bitcoin.  It seems like they're beta testing blockchain in the "free market" before they assume control and set an irreversible path to move the world to a global digital currency.  Don't you love the smell of 1's and 0's in the morning?  My favorite breakfast cereal is certified USDA organic, whole grain, ONES & ZEROS with organic rice milk and stevia.  I'm going to live forever!

In reply to by Mr_Potatohead

Endgame Napoleon Ahmeexnal Feb 11, 2018 11:21 AM Permalink

Many people get paid at tax time, like the poster on another site who explained that her family was getting $10,000 in child-tax-credit money. That is half of the yearly take-home pay in a $10-per-hour job, like licensed insurance sales or underwriting for most of the standard carriers. The refundable child tax credit  maxed out at $6,444 before doubled by RepubliCON socialists. 

On top of their free EBT groceries and taxpayer-subsidized rent in many cases, why doesn’t the US Treasury Department pay these citizens, legal and illegal immigrants for sex and reproduction with BitCoin?

It would be harder for the moms to blow the BitCoin on master bedroom furniture, $900 tattoos or beach trips to entertain boyfriends, bragging about it at work to single, childless citizens who must cover all of their bills on earned-only income, with a tax return that only covers a Costco membership.  

 

In reply to by Ahmeexnal

lester1 Feb 11, 2018 10:53 AM Permalink

Only a stupid person would accept Bitcoin as a payment for their business. The wild price fluctuations and plunges makes it nearly impossible to price your goods/services in bitcoin. You would either lose a fortune when the price plunges, or if it goes up you have pissed off customers who feel they have been ripped off and leave your company negative reviews.

Either way businesses and governments will get screwed. Bitcoin is simply too unstable as a currency and payment method. More and more people are waking up to this.. Sorry if I burst your bubble.

​​​​

Dsyno Joomanji64 Feb 11, 2018 11:16 AM Permalink

"Only an stupid person would accept Bitcoin as a payment"

Apparently you're missing the part where these businesses/gov agencies are converting the crypto into US dollars. In Arizona's case, the law allows them 24 hours to do the conversion, though I imagine they'll be making the conversion immediately.

Someone pays in crypto, the other side receives a comparable amount in USD. Simple. Your argument isn't how it works.

In reply to by Joomanji64

Exponere Mendaces lester1 Feb 11, 2018 11:24 AM Permalink

I'll take this one.

Since you're a sausage-snorkling retard, wipe the syrup off your chin and try to follow along.

This is just a phase in overall crypto adoption. First, you have a bunch of early adopters that supported the network and the ecosystem.

Second, you have an expanding usage of the crypto of choice, which includes services and exchanges.

Third, you start pricing things in crypto-only, and obviating the need to convert into shitty fiat.

See the future? If you don't, its okay - we already know you're an idiot. We've got this, grandpa.

 

In reply to by lester1

Dsyno Exponere Mendaces Feb 11, 2018 11:28 AM Permalink

"So what's the point of bitcoin then ??"

Really? What's the point of credit cards? What's the point of checks? What's the point of wire transfers? What's the point of all the thousands of other ways to send money?

Each has it's advantages/disadvantages. Each serves a different purpose.

Sorry man, but this entire argument is so juvenile and naive. Do a little bit of research.

P.S. Take your text editor off bold.

In reply to by Exponere Mendaces

Dsyno lester1 Feb 11, 2018 12:24 PM Permalink

Have you actually seen a $50 Bitcoin fee? I'm guessing no, so you're either guessing or regurgitating what you may have heard. On a side note, the largest bitcoin fee I've seen is $15.

When's the last time you did a wire transfer, if ever? My bank charges $30. I've seen some charge as high as $150.

Have you ever done a Western Union transfer and seen how much they charge? It's expensive as hell.

You ever buy something for $10,000 with a credit card? The receiver pays $250 to process that transaction. If you don't pay off that credit card charge that billing cycle, you pay 18% APR or whatever your interest rate is.

On another note, notice the article also said AZ will accept Litecoin and other crypto. Those have much lower transaction fees.

In reply to by lester1

tmosley lester1 Feb 11, 2018 11:46 AM Permalink

You are an ignoramus. They have less exposure to BTC fluctuation than they do to PM price fluctuation. BTC payments are made within an hour, while they have to wait more than a week for a check to clear before sending the goods.

There are legitimate reasons not to like Bitcoin, but you are so blinded by bias you can't even comprehend them. You just spend your whole life looking like a total idiot.

In reply to by lester1

Exponere Mendaces lester1 Feb 11, 2018 11:19 AM Permalink

What a text-bolding retard rant.

Plenty of places accept it, have zero problem with it, but like most dinosaur no-coiners you've been banging the gong about "volatility is too high" when there are ways to mitigate it. Heard of Futures? They're used to hedge things like this.

Zerohedge used to have a lot of knowledgeable commenters, but they've all fucked off to the Hamptons and their private parties while the prepper goldbug fucksticks have dominated the comments in the last five years.

Bitcoin is staying, and your little fragile shell is going to be pierced by the progress of crypto.

Better get new glasses asshole, you'll need it to see the future smacking you in the face.

In reply to by lester1