Indiana legislators may soon consider a new bill that would allow taxpayers to pay their taxes with certain approved digital currencies. The proposed law, House Bill No. 1683, was introduced last week and submitted to the Committee on Ways and Means on January 24.
The bill’s provisions would empower the state to select approved cryptocurrencies that could be accepted as payment from taxpayers. Those taxpayers would be able to use any of those approved digital currencies to pay taxes and other designated liabilities. The law would require county treasurers to determine the payment’s value based on the current exchange rate:
A person may make a payment for taxes, special assessments, penalties, interest, costs, or any other liability imposed under this article with a virtual currency that is approved by the department.
(c) If a person makes a payment for a liability imposed under this article with a virtual currency approved by the department, a county treasurer shall determine the value of the payment in United States dollars at the time the payment is made by using the applicable exchange rate determined in accordance with the criteria prescribed under IC 4-3-22-20
Indiana is not the only state considering this type of tax payment option. Late last year, Ohio decided to allow businesses to use Bitcoin to pay certain state taxes. More recently, New Hampshire and Wyoming have reportedly been considering changes that would permit their taxpayers to pay taxes using crypto.