Not this year. That was the message the New Hampshire House of Representatives sent supporters of a legislative push that would have made the state the first in the country to allow residents to pay their taxes using bitcoin. The embossed word Bitcoin sits on the edge of Bitcoins stacked in this arranged photograph in Danbury, U.K., on Thursday, Dec. 10, 2015. Photographer: Chris Ratcliffe/Bloomberg The bill, HR552 , introduced last year by New Hampshire State Representative Eric Schleien (R), was voted down this month by a vote of 264 to 74. The bill would have required the state’s treasurer to “develop an implementation plan for the state to accept bitcoin as payment for taxes and fees.”
Bitcoin first appeared on the global currency scene in 2009. Bitcoin is a digital currency which means that you don’t rely on an exchange of paper for transactions and there is no centralized bank that records your transaction: instead, bitcoins are stored in a digital “wallet” which can be found on your computer. You spend bitcoins just as you would dollars on everything from shopping for a sofa on Overstock.com to booking a vacation on Expedia .
While the popularity of Bitcoin is spreading, the government and taxing authorities have been slow to embrace the virtual currency. The IRS does not accept bitcoins as direct payment for your tax obligations nor do any states (though you can pay taxes and fees in some instances using payment processors). Schleien was hopeful that New Hampshire would be the first to accept the currency as payment for taxes and fees, calling the approach “innovative.”
While at work on the bill, Schleien worked to educate the public and his colleagues about Bitcoin, specifically addressing the issues of risks and costs. By using a third party payment processor like BitPay, […]
