ARIZONA HOUSE OF REPRESENTATIVES

SB 1091: income tax payments; bitcoin

PRIME SPONSOR: Senator Petersen, LD 12

BILL STATUS: Caucus & COW

WM: DPA 6-0-1-2

Abstract

Relating to income tax payments by cryptocurrency.

Provisions

1. Allows taxpayers to pay their income tax liability with a payment gateway, such as Bitcoin, Litecoin or any other cryptocurrency recognized by DOR. (Sec. 1) (WM)

2. Requires DOR to convert any cryptocurrency payments to USD at the prevailing rate, less any fees or costs incurred, UNDER RULES PRESCRIBED BY THE DIRECTOR. (Sec. 1) (WM)

3. Contains a delayed effective date of January 1, 2020. (Sec. 2)

4. Makes technical and conforming changes. (Sec. 1)

Current Law

A.R.S. § 43-501 requires all taxpayers to pay their income tax liability by April 15^th of each year, unless an extension is granted. Income tax liability, including interest and penalties, may be paid by check, electronic transfer or cash.

Additional Information

NCSL defines cryptocurrencies as digital or virtual currencies used for electronic payment transactions. The currencies are a digital representation of value that functions as a medium of exchange, a unit of account, store of value and use encryption methods to make them secure and nearly impervious to counterfeiting (IRS Notice 2014-21).

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Fifty-third Legislature                  SB 1293

Second Regular Session                               Version 2: Caucus & COW

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