certify
Home arrow Article arrow Article Detail

Revenue departments of two US states Colorado and Utah introduced programs that will permit taxes to be paid in cryptocurrency

Profile Image

Indrani bose Follow

INDIA

Jul, 11 2022

Jul, 11 2022

likes | comments 0

Article Image

A program that will enable individuals and businesses to pay their tax bills with virtual currencies, such as Bitcoin, Ethereum, and Dogecoin is being introduced by the revenue departments of a pair of rocky mountain the US states Colorado and Utah targeting implementation within a few months.

Beginning Jan. 1, 2023, state and local governments will be able to accept crypto for tax payments under the Utah state legislature's H.B. 456. In addition, the law requires that the Division of Finance contract with a third party  like a cryptocurrency payment gateway to expeditiously cryptocurrency into dollars conversion time before remitting them.

In Colorado, crypto advocate Governor Jared Polis urged the Department of Revenue to develop a program for accepting cryptocurrency tax remittances. It is still working through some of the details and the government is planning to have a special crypto payment portal up and running for taxpayers to use by September. To immediately exchange the cryptocurrency into U.S. dollars, Colorado is also planning to hire a third party. “We are working to make it similar to how we accept credit cards and other forms of payment,” said department spokesperson Meghan Tanis.

There are some logistical hurdles to overcome before the program launches in two Western states due to the sector's selloff.

During the 2022 legislative session, around 37 states considered the bills affecting certain aspects of cryptocurrency said Heather Morton, who is a policy analyst at the National Conference of State Legislatures. Several states have considered bills authorizing authorities to accept cryptocurrency, including Arizona, California, Hawaii, Illinois, Louisiana, New York, and Oklahoma. Even though many states were supporting following Colorado and Utah's lead, economists, academics and crypto skeptics are giving warning to lawmakers against initiatives that could harm state treasuries and taxpayers.

Currently before the California Legislature, Betty Yee, California's state controller, called a crypto-payment bill (S.B. 1275) as “fiscally irresponsible,” highlighting the price volatility for cryptocurrencies and lack of a robust federal regulatory framework for digital assets.

John Valentine, chairman of the Utah State Tax Commission said that in Utah's program, state money would not be at risk during cryptocurrency conversions. He further added that it may be difficult to find a vendor who is willing to absorb the risk.


likes | comments 0

Profile Image

Indrani bose

CBW - External Analyst

INDIA

Comments
Data Centre Construction - World First artificial intelligence AI-Tech Utility Token
banner
Article
India's money laundering act now applies to variety of crypto operations

Prevention of Money-Laundering Act (PLMA) of 2002 now applies to a variety of cryptocurrency operations, including the exchange, transfers, custody, and administration of virtual assets..;

Disclaimer: The information is for informational purposes only.​ This advertisement does not constitute financial advice or any other advice. You should consult with a financial professional to determine what may be best for your individual needs. None of the information and/or content available through this advertisement is intended as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any company, financial product, security or commodity. To the maximum extent permitted by law, we disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable or result in any investment or other losses. In Making the investment decision, investors must rely on their own examination of the issuer and the terms of the offerings, including the merits and risks involved. Investments are speculative, illiquid, and involve a high degree of risk , including the possible loss of investment.