Permits remittance of state income tax through payment gateways using electronic peer-to-peer systems. Background: According to the Internal Revenue Service, virtual currency is a digital representation of value that functions as a medium of exchange, a unit of account or a store of value, which may be used as payment for goods or services, or held for investment purposes (Notice 2014-21). According to the National Conference of State Legislatures (NCSL), cryptocurrencies, such as bitcoin, are digital or virtual currencies that use encryption methods to make them secure (NCSL). Current law requires state income tax, including any interest and penalties, to be paid to the Arizona Department of Revenue (DOR). Payment may be in the form of a check payable to ADOR during such time and under such regulations as the Director of DOR may prescribe (A.R.S. § 43-505). According to DOR, acceptable forms of payment, in addition to check, currently include credit card, cash or electronic transfer. According to DOR, this legislation adds a new method of payment for taxpayers but makes no change to tax liability and therefore would have no state revenue impact. However, DOR does anticipate significant fiscal impact with respect to the cost of implementing the bill. Provisions: 1. Allows, in addition to payment by check, state income tax remittances to be made through a payment gateway, such as bitcoin or other cryptocurrency, using electronic peer-to-peer systems. 2. Requires DOR, within 24 hours, to convert cryptocurrency payments to dollars and credit a taxpayer's account with the converted dollar amount. 3. Becomes effective on the general effective date.
In an effort to be an unbiased source of information, all text in this summary comes directly from government resources.
transmit to houseFri, Feb 9th 2018
senate passedThu, Feb 8th 2018
senate second readingThu, Jan 11th 2018
senate first readingWed, Jan 10th 2018