U.S. States To Consider Cryptocurrency In Paying Taxes
The state of Illinois’ lawmakers is gearing into a proposal to allow the use of cryptocurrency to pay taxes possible for its residents.
The trend this 2018 started in January with the states of Arizona and Georgia made their bold move to consider such measures filed in February – but previously unreported – making Illinois the third state to emerge and embrace this change.
Illinois’ House of Bill 5335 states:
“In addition to any other method of payment provided for by law, the Department shall accept payment for any tax imposed by the State and administered by the Department by cryptocurrency.”
Indicated on March 5, the bill was passed for deliberation to the Illinois House of Revenue and Finance Committee that was initially proposed on Feb. 15 by Representative Michael J. Zalewski calling for tax officials to accept cryptocurrency and allow payments be converted to U.S. dollars on the same day.
Public records indicate Arizona’s Senate passed the bill with votes 16-13 on Feb 8. Georgia’s bill, on the other hand, remains to be passed or denied.
Also competing for the title blockchain capital, the state of Wyoming is looking into a bill that would aid state property tax on cryptocurrencies.
Following Arizona, Georgia and Illinois’ lead, under-funded states who desperately need more money revenue will want this opportunity and cryptocurrency opened to state taxes will widen tax bases in general.
The news is likely to encourage enthusiasts and cryptocurrency investors, and a respite that more and more U.S. states seem to be joining the bandwagon in incorporating cryptocurrency rather than rejecting it.
It will certainly be intriguing to see which way Illinois’ legislation goes in the coming weeks in addition to Arizona’s pending decision.
Illinois’ House of Bill 5335 may just be the first of more similar bills to engineer alteration nationwide.
This lawmaking regulation marks only the first state-level dynamism to legalize cryptocurrencies for tax payments in the U.S. The early domino effect may pave the way on how the world sees cryptocurrency and how it can benefit everyone.