According to the latest public records dated April 23, the Arizona House of Representatives has passed a new bill that allows residents of the states in order to pay their taxes in digital currencies. According to state law, the bill must go through three readings. Last month, the House Ways and Means Committee approved the bill, and the Arizona State Senate passed it. Lawmakers have now moved the bill to the full House floor for a vote.
If approved, this measure will authorize the Arizona Department of Revenue to collect taxes from residents in the form of cryptocurrencies, making Arizona the first U.S. state to officially accept this payment method.
The bill is also subject to revision whether it should include other altcoins like “LiteCoin or any other [recognized] cryptocurrency” for the purpose of tax payments. The bill also specifies that after the receipt, the government has to convert all the received crypto payments into US Dollars “at the prevailing rate”.
The Arizona State government has already passed the rules and laws pertaining to the adoption of Blockchain technology in the state. Last April, a bill was passed in order to legalize Blockchain signatures and allow the implementation of smart contracts. It also allows the organizations to hold and share data on a distributed ledger technology.
As regulators continue to streamline the cryptocurrency framework, they will clarify operational procedures further. More states in the US and introducing the liberal blockchain and cryptocurrency legislations. Another state of Illinois is also considering a similar bill which allows its residents to pay taxes in digital currencies.