US States look into accepting Cryptocurrencies as tax payments

Even though governments are stereotypically slow and reluctant to accept change, some local governments in the United States have surprised their residents by starting to accept cryptocurrencies as tax payments. Arizona, Wyoming, Tennessee, Kansas and New Hampshire are among those states that are expected to accept cryptocurrencies as a valid mode of paying taxes.

Arizona: Bitcoin doesn’t stink. We’ll take it.

While several bills like SB1091 and SB1145 aim at regulating tax payments, digital currency has been making its way in the state legislature. Arizona is on the way to become the first US state that will accept taxes in cryptocurrencies very soon. The House Bill 5335, aka the Revenue Cryptocurrency Bill states that,

“A taxpayer may pay their income tax liability using a payment gateway, such as Bitcoin, Litecoin, or any other recognized cryptocurrency using electronic peer-to-peer systems.”

Tennessee: Legalizing Cryptocurrencies is not just a proposal; it is an innovation

“We are not just competing with other states in this space; we are competing with the whole world.”

Tennessee House Representative, Jason Powell, said after a January 24 presentation on blockchain technology. Tennessee is supportive of blockchain and cryptographic technology. It is likely to soon legalize cryptocurrency payments and are aiming to becoming an innovative leader in this new field. Passing of this bill would also protect ownership rights of information secured on Blockchain Networks. A bill that officially recognizes cryptocurrency transactions is already proposed in the state legislature and would be soon looked into.

Other states are following suit

Wyoming saw several drafts being introduced in the state legislative in the past few weeks and The Wyoming House of Representatives have passed two of them. Wyoming government is already taking steps to improve feasibility of startups from the sector which deals in crypto-activities and together aims at becoming crypto-friendly jurisdiction.

Kansas and New Hemisphere are two other states that have passed legislation with crypto-related exempts in their money transmitter regulations.