Cryptocurrency Rejected For The Payment of Taxes by North Hampshire

Zain  |  Jan 17, 2020

Lawmakers in the New Hampshire states have discarded a bill that would have let state agencies be in a position to accept cryptocurrencies as payment for taxes in the state. On January 8, the New Hampshire House of Representatives made their decision of killing the bill, official. “Inexpedient to legislate” was the term given to the initiative, following a motion from the General Court’s Executive Departments and Administration.

Debunking the Bill

Authorities label the bill baseless by virtue of the high volatility of cryptocurrencies like bitcoin (BTC) via public record. Given the bill was approved, The Department of Revenue Administration (DRA) expenditures would have spiked up to an “indeterminable amount” in the fiscal year of 2020. To quote the exact wordings-

“These changes would have increased DRA expenditures by an indeterminable amount in FY 2020, in anticipation of an implementation date of July 1, 2020.  DRA cannot estimate if any additional revenue would be generated due to the acceptance of cryptocurrencies. The volatility of accepting cryptocurrencies could affect revenues due to tax assessments being generated in U.S. currency.”

Tracing Bill's History

The NH HB470 was first introduced and made the news in January 2019. Adoption of that would’ve led to the legalisation of crypto tax payments from July 1, 2020. Republicans Dennis and Michael Yakubovich were sponsoring the bill and its origins date back to 2015. That time, an older bill from a similar background was proposed but it was staunchly opposed and lost 13-4, on the same pretext of ‘inexpedient to legislate. 

Truth be told, any bill which would allow the adoption of cryptocurrency as a means of payment of the taxes have shown little to no progress. In 2018, multiple bills of similar characteristics were outright rejected, or postponed indefinitely or suffered at the hands of vetoing power of the governor. All so-called tax-friendly bills introduced in Amazon, Illinois and Georgia suffered the same fate.

 

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