It’s yet another time that a law is being tabled for debating to allow government agencies to accept crypto as payment for taxes and other government fees. According to Michael Yakubovich and Dennis Acton, it’s high time the government starts accepting crypto as payment. Under House Bill 470 the two hope other lawmakers will rally behind them and pass the new law without any hitches. If everything goes well by 1st July 2020, New Hampshire residents will join residents in other states paying taxes in crypto.
Under the new law, residents will be able to pay their dues to the government through an undisclosed number of currencies including crypto. If approved Bill 470 will also get rid of the current conditions which only allow government agencies to accept taxes and fees in US dollars. The two were supposed to table Bill 470 for debating session on 23 January, but to date, no information concerning the hearing is out in the public domain.
Treasury Tasked with Setting Guidelines
Once Bill 470 is enacted into law the state treasury will be tasked with the responsibility of ensuring a smooth integration of payment channels. According to information on the bill, Treasury has to set up a third party entity in place to receive the digital coins on its behalf. From there the agency will proceed with conversion and channel the funds to respective government agencies. To avoid incurring losses due to the volatility nature of crypto the bill proposes converting the cryptocurrency received into alternative fiat currencies. Once the law is in place, New Hampshire treasury has until 1 November 2019 to integrate the payment platforms. To ease the burden of transaction cost the lawmakers propose the entity to process all transactions at no cost.
Although accepting cryptocurrencies as payment for taxes and other fees by state agencies is like venturing into unchartered waters some states are already receiving Bitcoin as payment. They include Ohio and Buckeye state. In Buckeye for instance taxes in Bitcoin are accepted through an online portal while Ohio is working with BitPay to convert any digital coins coming in as tax payment. For New Hampshire, this is their second attempt to get local government agencies to start accepting crypto as payments for taxes after the 2015 proposal failed. It was short down at committee stage many lawmakers were against the law.