Georgia Proposes To Accept Cryptos As Tax Payments
Georgia recently proposed a Senate bill which, if approved/passed, would allow for cryptocurrencies to be used to pay for taxes. This would apply to all state taxes and even licenses. The Senate Bill 464, requests the state revenue commissioner to:
“accept cryptocurrencies for payment of taxes and license fees; to require conversion of cryptocurrency payments into United States dollars; to provide for related matters; to repeal conflicting laws; and for other purposes“.
Furthermore, once crypto payments are received, they are to be converted to U.S. dollars within 24 hours. Interestingly, this legislation has been put forth at a time when other U.S. states have also expressed an interest in accepting cryptos as a valid mode of payment for taxes.
Georgia Joins Other States In Wanting To Accept Cryptos
As Core Media reported two weeks ago, the U.S. state of Arizona had also proposed a bill to accept cryptocurrencies as payment for taxes. It appears that Arizona has almost reached the point where it could officially become the first American state to process tax payments in cryptos. That’s because its crypto bill has already passed its third reading.
There is some more new crypto-related legislation that has been drafted. Notably, the state of Wyoming has suggested to stop cryptocurrencies from being classified as “property” when it comes to tax collection. Moreover, the SF0111 bill, through which this legislation was put forth, mentioned cryptocurrencies in a list of “intangible items” that should not be subjected to property taxes. Included in this list were cashier cheques and gold.
Tax Payments Could Go Up
Although Georgia, Wyoming, Arizona, and a few other U.S. states appear to be taking a crypto-friendly approach, American tax expert Robert Wood claims that making tax payments using cryptocurrencies could actually result in higher tax payments. That’s because any profits generated from crypto investments are also taxed as capital and investment gains, according to Wood.
It’s possible that state lawmakers are willing to accept cryptocurrencies as tax payments, because they have begun to realize that a significant number of Americans have started trading and investing in cryptocurrencies. However, as Core Media pointed out, very few Americans have reported their crypto-related earnings to the U.S. Internal Revenue Service (IRS). In fact, fewer than 100 of the 250,000 individuals who filed their taxes through Credit Karma, an American multinational financial firm, included any crypto-related transactions on their tax returns.
These crypto tax bills might be an attempt on part of Georgia and other U.S. states to actually start collecting taxes on cryptocurrencies. If these bills become law, then the state governments could get a better idea of just how many people are involved in the cryptosphere. That’s only if people choose to pay their taxes with cryptocurrencies.