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New Hampshire: a first step for the payment of taxes in bitcoin
New Hampshire: a first step for the payment of taxes in bitcoin
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New Hampshire: a first step for the payment of taxes in bitcoin

By Marco Cavicchioli - 4 Feb 2019

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In New Hampshire, a north-eastern state of the US, a bill has been approved that would officially recognise bitcoin as a means of payment for state taxes.

This is the NH HB470 proposal, an act that allows government agencies to accept the cryptocurrency as payment.

The bill also requires the State Treasury to develop an implementation plan for Hampshire to accept the cryptocurrency as a payment for taxes and duties and to allow state agencies to accept bitcoin payments from July 1st, 2020.

The plan will address issues of accounting, valuation and management of cryptocurrency payments, and will identify an appropriate third party payment processor to handle transactions at no cost to the state.

new hampshire payment taxes bitcoin

Since they cannot predict whether a third-party payment processor will be available that does not charge the state any fees, they expect the state to charge the payer.

If approved, by November 1st, 2019, the State Treasury will have to submit the plan to the State Governor, the House of Representatives, and the Senate.

The State Treasury handles all payments due to the State and these to date are to be made exclusively in US dollars: any payments received in other currencies are rejected.

With this new law, cryptocurrency payments to the State will have to be converted into US dollars, but they can also be held by the State in the form of bitcoin or other cryptocurrencies.

The bill will also allow other state agencies to accept crypto payments, but without obligation.

For the time being, the proposal has been unanimously approved by the subcommittee of the State Chamber dealing with taxes and finances, but the decision is not final yet.

Once the State Treasury has drawn up the above plan, it will be proposed to the Senate and the State House of Representatives and only then can it be approved definitively.

In the discussion before the bill was passed, MP Jaci Grote pointed out that this bill was not only an attempt to get cryptocurrencies approved as a means of paying taxes but, in fact, it was an attempt to get them officially recognised by the state as an acceptable form of payment in New Hampshire.

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 25 thousand subscribers.

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