Sunday, December 4, 2022

Georgia Lawmakers Introduce Bill to Allow Cryptocurrency Tax Payments

Georgia Lawmakers Introduce Bill to Allow Cryptocurrency Tax Payments

Two senators in the state of Georgia have brought forward a bill allowing the state department of revenue to accept both bitcoin and other yet-to-be-defined cryptocurrency payments for taxes and licenses. If passed, all payments would be covered to United States dollars within twenty-four hours. 

Also see: Coinbase Notifies 13,000 Customers it Must Hand Over Their Records to IRS

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Which Will Be the First US State to Embrace Crypto?

The state of Georgia has introduced legislation which would not only open up a channel for cryptocurrency tax and license payments, but would formally make it the first U.S state to move in such a direction.

Coming out of Senate Bill 464, Republicans Michael Williams and Joshua Mckoon drafted legislation where the state department of revenue would quickly settle any payments into USD within twenty four hours. The bill reads:

“The commissioner shall convert payments made in cryptocurrency to United States dollars at the prevailing rate within 24 hours of his or her receipt of such a payment and shall credit the payor’s account with such converted dollar amount.”

Multiple States Considering Crypto

Despite this bill being a pretty radical piece of legislation, many questions still remain.

Georgia flagHow would the state of Georgia handle custody issues of the cryptocurrencies? Would they control the private keys? Do they have the necessary accounting and tax software to maintain and handle the long list of complexities that come with accepting cryptocurrency payments? All of that remains to be seen.

Regardless, a bill like this is a step in the right direction for a country that clearly has shown a large interest in digital assets such as Bitcoin and Ethereum. And the state of Georgia is not alone — Arizona recently announced it had passed a similar bill allowing residents in the state to pay their state income taxes in cryptocurrencies. Assuming it passes its House of Representatives and approved by the governor, it will become law.

Similarly, Wyoming is on the verge of exempting cryptocurrency holdings from state property taxes.

As we progress through 2018, expect more states in the United States and nations around to the world to reveal their plans regarding digital assets, as the race to become the leader in digital asset businesses continues to heat up.

Although this bill talks about converting all bitcoin to USD within twenty-four hours, do you think state Governments will ever hold on to tax payments in cryptocurrency for longer? Tell us your thoughts below.

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