Crypto taxes are all the rage at the moment, and with tax season approaching faster than a cheetah stalking its prey, more states are announcing their stance on crypto taxation. Back in November 2018, Ohio became the first state to allow businesses to pay their taxes in Bitcoin. This move appears to have sparked the imagination of treasurers from other states to start doing the same, with New Hampshire being the latest state to follow suit and consider accepting BTC for business tax bills.
It’s Not New Hampshire’s First Time
Back in 2015, New Hampshire tried to pass a bill that would require the state treasurer to implement a plan for the state to accept Bitcoin as a payment method for taxes and fees. Unfortunately, House Bill 552 came a little too early in the American crypto revolution and was cast aside with a note of “died in chamber”. Representatives from the state were understandably disappointed with the outcome, as passing the bill would have made New Hampshire a pioneer in crypto taxes four years before it became mainstream.
Second Time Lucky
If at first you don’t succeed, try, try, and try again – or at least that’s how the old saying goes. It appears as if on the second attempt, New Hampshire lawmakers will finally get the nod for the state treasurer to implement a plan to accept Bitcoin as a method of payment of taxes and fees. In House Bill 470-FN the plans go into greater detail and even has a breakdown of expected revenue from the acceptance of crypto. Unfortunately, the figures given are either $0 or indeterminable – not a great way to kick off the revolutionary bill. Nonetheless, it looks like New Hampshire is likely to pass the bill, especially after Ohio just did the same.
Bill to Go Live Before the End of the Year
If the bill is passed, New Hampshire won’t actually start accepting Bitcoin for taxes and fees until July 1, 2020. The state treasurer has to come up with a plan to accept cryptos at no cost to the state and present it on or before November 1, 2019 should the bill go ahead. If the state treasurer comes up with a plan of action, then the bill will become live on the date of acceptance of the presentation.
Companies Champing at the Bit
Since Ohio launched its new tax portal that allows firms to pay taxes and fees in Bitcoin, firms have been using it in their droves. Overstock was the first company to pay taxes and fees in Bitcoin, a move that has seen other companies follow suit. Big players want to be seen as ahead of the game and at the forefront of this new technology, so getting their names out there as one of the first companies to pay taxes in Bitcoin is a big deal.
For now, businesses in New Hampshire will have to wait until mid-2020 before they can pay their taxes and fees in Bitcoin, but it’s looking more and more likely that it will happen. If New Hampshire accepts the House Bill we are likely to see a raft of other crypto friendly states – such as Colorado and California – start implementing similar House Bills to appease companies.
