Lawmakers in New Hampshire have filed a bill that will, if passed, allow people to make payments to the state’s agencies in crypto, including for their taxes.
Filed (Jan 3) by Republican state senators Dennis Action and Michael Yakubovich, House Bill No. 470 will require state-level agencies to accept crypto as a payment option for fees and taxes via a third-party entity. The type and number of different crypto that could be accepted for payment is yet to be known.
This third-party payment processor “will process cryptocurrency transactions at no cost to the state.”
The proposed bill clarifies that the concern are the valuation and risk of crypto volatility against the US Dollar. The bill also states:
“Tax payments received by the state would need to be converted to US dollars or, mitigate such risk by continually monitoring cryptocurrency levels held by the state to ensure there is as much demand for state payments to vendors and payees as the state have in its ‘inventory’.”
New Hampshire state agencies currently only accept fiat USD for payments.
The bill was scheduled for a public hearing on January 23 and is set for a review by a sub-committee on January 29. The due date for a decision is set for March 14. If approved, the state will have until November 1 to develop an implementation plan for the new payment method, and New Hampshire agencies will start accepting cryptocurrencies from July 1, 2020.
New of the proposed bill came as no surprise as New Hampshire has been perceived as a state with a vibrant crypto community and many businesses accepting cryptocurrency. On a similar path, a house bill No.1683 filed on Jan 24, asks the General Assembly of the State of Indiana to amend the current taxation code. Should the bills came into force, New Hampshire and Indiana will join Ohio in accepting the payment of taxes in crypto.