Paying Your Taxes in Bitcoin? Arizona Bill Aims to Allow It

Bitcoin and other cryptocurrencies have been experiencing a few growing pains as of late, including falling prices and some banks cracking down on customers purchasing them with credit cards. However at least one state is looking to embrace the crypto craze. If a bill currently in the Arizona state legislature passes, it would allow residents of the Grand Canyon state to pay their taxes using Bitcoin — making them the first state in the country to do so.

As the Arizona Republic reports, Senate Bill 1091 is being sponsored by state Senator Warren Petersen — a Republican from the Phoenix suburb of Gilbert. It calls for the Arizona Department of Revenue to begin accepting Bitcoin and other crypto payments by 2020. Once the cryptocurrency transfer was completed, the amount would then be converted to U.S. dollars within 24 hours. The bill actually passed the Arizona State Senate last week and is now headed for the House.

Proponents of this Bitcoin bill say it will not only give taxpayers more options but will also signal to companies and enthusiasts that Arizona welcomes blockchain and crypto technology. Of course there are some in opposition to the proposed plan as well. Speaking before the Arizona Senate’s vote on the bill last week, Democrat Steve Farley of Tucson said, “What this does in effect is transfer the volatility risk off the person paying their taxes and onto the Department of Revenue and thus all other taxpayers. We take American dollars at the Department of Revenue to pay taxes. I think American dollars ought to be good enough.” To the first point, Petersen notes that the bill calls for the taxpayer to be held responsible if their payment falls short of their obligation once the conversion is completed. As the Senator explained, “Even if for some reason the state doesn’t receive what was sent, the state will only credit you with what is received.” Humorously, Peterson also addressed Farley’s concerns about the falling price of Bitcoin, saying, “What the good senator failed to mention, it is true that it has dropped … he forgot to mention it’s gone up 4,000 percent.”

While the implications are fairly limited, this proposed bill is actually an interesting development in the growth of cryptocurrencies. At a time when it seems governments are trying to work against Bitcoin and others, it’s certainly interesting to see at least one state potentially embracing them. Perhaps Petersen best summed up the current crypto climate best in saying, “Some of the people saying this is dumb are the same kind of people when the Internet first got going would say it’s dumb.” Fair enough, I say.

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Uber Relaunches UberPool as UberX Share

With demand for travel continuing to rise, the ridesharing app Uber has announced a feature to help both travelers and commuters to get to their destinations while saving money. After previously pausing its UberPool service option during the pandemic, Uber is now rolling out a replacement called UberX Share. At this time, the new option is available to riders in New York City, Los Angeles, Chicago, San Francisco, Phoenix, San...

Split Payment Platform Kasheesh Launches as Alternative to BNPL

In recent months, "buy now, pay later" (BNPL) platforms have exploded in popularity. What's more, with Apple jumping into the space, the practice is likely to continue growing despite some concerns in regards to how BNPL services impact consumers' personal finances. With that in mind, one FinTech has just revealed its alternative: a payment-splitting platform for online retail. Today, Kasheesh exited stealth mode to announce the launch of its unique...

Credit Karma Money Spend Adds Cashback Offers for Cardholders

Those looking to add some extra cash back into their pocket will soon have a new option. This week, the popular credit monitoring site Credit Karma announced a new feature for its Credit Karma Money customers. Now, debit cardholders will be able to earn cashback when making purchases from select retailers. According to the site, the list of eligible retailers includes national chains, such as Adidas and Shake Shack, as...