Another contender joining the race is the state Georgia, as it is placing the matter of cryptocurrencies like Bitcoin and others in use for the payment of taxes under consideration.
The Senate Bill 464, “SB 464 Taxes and License Fees; state revenue commissioner to accept cryptocurrencies for payment; require” brought to the legislators just a couple of days ago, on February 21st, 2018, by state senators who align with Republican party, Williams and Mckoon, seeks to modify the laws in the state of Georgia, in regards to payments for taxation.
“To amend Code Section 48-2-32 of the Official Code of Georgia Annotated, relating to forms of payment of taxes and license fees, so as to require the state revenue commissioner to accept cryptocurrencies for payment of taxes and license fees; to require conversion of cryptocurrency payments into United States dollars; to provide for related matters; to repeal conflicting laws; and for other purposes.”
This bill is supposed to prompt the revenue collector of the state to say yes to cryptocurrencies as payments for taxes and fees owed.
“The commissioner shall accept as valid payment for taxes and license fees any cryptocurrency, including but not limited to Bitcoin, that uses an electronic peer-to-peer system.”
The bill seems to be similar to other like kinds of legislation be considered in other states containing similar verbiage. The revenue collector would receive the cryptocurrencies like Bitcoin and other approved cryptocurrencies and then would have to convert their received cryptocurrencies into fiat currencies within the time span of a day. Upon reception and conversion of these crypto funds, the revenue collector would then account for the payment of taxes by each individual.
The importance of the legislation
The legislation is important because it shows that there is interest in the legitimization of these currencies by more present authorities. The use of cryptocurrency payments for taxation provides for a further bedrock for cryptocurrencies as naysayers have stated that cryptocurrencies are not legitimate until they can be used for the payment of taxes.
Well, slowly but surely, states are seeking to cater to their constituents and are looking to institute cryptocurrencies as payment for taxes.
On another note, payment for taxes in cryptocurrencies from a consumer standpoint may be somewhat difficult and less seamless than one would think.
One of the main reasons would be because of the lack of stability in cryptocurrencies in the current market. The increased volatility would mean that the crypto sent over may change in price, meaning that, they would either have paid in excess on their taxes and would have had gains if they only hodled, or they would have paid less if the value of the coins went down, which may mean that they owe the state revenue collector the difference.
One of the lingering questions will be, is the legislature ready to pass the bill?
For now, it seems that Arizona has a better chance of being the first state to pass their tax bill as it is now sitting in the house of representatives and will only need to pass through their and then get signed by Doug Ducey, the Republican governor of Arizona.