The future may be closer than it seems in Arizona thanks to a current senate bill that may allow the state to be the first in the union to accept bitcoin as a payment for income taxes.
Senate Bill 1091 would allow Bitcoin or other cryptocurrency to be accepted as a form of payment for income taxes by the Arizona Department of Revenue beginning in 2020, according to the Arizona Republic. Currently sitting in the House, the bill passed Arizona’s Senate on Feb. 8.
Bitcoin and cryptocurrency are digital currencies that can be used instead of a bank or credit card.
According to the Arizona Republic article, if the bill passes then the revenue department would have to convert payments to U.S. currency at a prevailing rate crediting the taxpayer’s account with the converted dollar amount. Any swing in price that could result in the state not receiving the full payment would be the taxpayer’s responsibility.
The proposed bill has proven testy amongst Arizona’s representatives.
“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,” said Sen. Steve Farley to the Arizona Republic. “We take American dollars at the Department of Revenue to pay taxes. I think American dollars ought to be good enough.”
S.B. 1091 co-sponsor Rep. Jeff Weninger told Fortune that the bill would help grow technological innovation in the state.
Weninger also told Fox News that the bill is sending a signal to everyone in the United States and possibly throughout the world that Arizona will be the place to be for blockchain and digital currency technology in the future.
