In what could be a significant step in the recognition and legitimization of cryptocurrencies, the US states of New Hampshire and Indiana have introduced bills that allow cryptocurrencies to be paid and accepted as taxes. These bills, if passed, will recognize cryptocurrency payments as valid forms of tax payments in the future.
The move comes in the midst of several progressive steps taken by many states in the United States over the past year and a half. Only recently, the state of Wyoming introduced a bill that if passed, would accord Bitcoin and other cryptocurrencies the same legal status as regular money.
If the bills in question before the legislatures of New Hampshire and Indiana pass, the states will follow the example of Ohio, a state that has taken giant steps towards the payment of taxes in the form of cryptocurrencies. Seminole county of Florida became the first county in the United States to accept Bitcoin and Bitcoin Cash as payment for public taxes last year.
In the state of Indiana, House Bill number 1683 aims to bring an amendment to the existing state tax code and approve the use of virtual currencies to pay taxes, penalties etc. If approved by the General Assembly, the amendment will come into force from July, following which individuals and companies can pay taxes in any form of virtual currency.
Under the proposed bill, the county treasurer would determine the value of payment made by consulting the existing exchange rates.
In the state of New Hampshire however, the passage of the bill is trickier as this bill is very similar to one voted down by the State’s House of Representatives in January 2016. The bill before the present legislature, House Bill number 470-FN seeks to allow state agencies to accept cryptocurrencies against due payments. Furthermore, citing the volatility of cryptocurrencies, the bill also recommends that tax payments made in Bitcoin or any other cryptocurrency be converted to fiat to alleviate risk.
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