Arizona Moves To Allow Tax Payments In Various Cryptocurrencies

The Arizona House of Representatives Rules Committee passed SB 1091 which is a bill that will allow residents to pay their state taxes in cryptocurrency - public records indicated on April 23rd. In Arizona, laws are required to pass three readings. The Ways and Means Committee approved the bill last month after successfully moving through the state senate. It will now proceed for a vote by the House floor.

The bill was revised to expand the amount of different altcoins that could be used for tax payments, including "LiteCoin or any other recognized cryptocurrency". It also states the state government must immediately exchange the cryptocurrency at the prevailing rate - which would no doubt create a predictable downward trend on major coins around the end of the US tax season in the future.

Arizona has recently passed other laws related to state adoption of cryptocurrencies. In April HB 2417 recognized Blockchain signatures as well as smart contracts for their legal validity. Another bill, HB 2603 allowed corporations to retain and share data on distributed ledgers.

Many other states are considering similar legislation and have taken similar action to Arizona such as Wyoming and California.