Arizona is stepping closer to becoming the first state to recognize cryptocurrencies such as bitcoin as a currency or payment system.
On Wednesday, the Arizona House Ways and Means Committee approved Senate Bill 1091, which amends title 43-505 of the Arizona Revised Statutes.
Under the measure, taxpayers will be able to pay their income tax liabilities using bitcoin and cryptocurrencies using peer-to-peer systems. The state’s Department of Revenue will convert cryptocurrency payments to U.S. dollars at the current rate after receipt. It will then credit taxpayer’s account with the converted dollar amount actually received minus any fees incurred for conversion.
GOP State Sen. Warren Peterson is the primary sponsor of the bill. His fellow Republicans, State Sen. David Farnsworth, Representatives Travis Grantham and Jeff Weninger are co-sponsoring it. The bill still needs to go through two committee readings.
