Home – VT Proposes First-in-the-Nation Bitcoin Tax

VT Proposes First-in-the-Nation Bitcoin Tax

A bill (SB 269) introduced this month by Vermont Sen. Alison Clarkson (D) would let companies operate digital currency systems like bitcoin in the state and allow the state to tax them a penny per transaction. The companies would pay the tax in whatever form of digital currency they use “at the then current exchange rate for the currency with the U.S. dollar.”

 

Heather Morton, program principal in fiscal affairs for the National Conference of State Legislatures, said SB 269 is “the first bill I have seen that would impose a transaction tax on digital currency transactions.” She said Vermont was also the first state to pass legislation dealing with blockchain, the distributed ledger technology underlying bitcoin.

 

Clarkson said the intent of her current bill is to help “build Vermont’s fluency in financial technologies, to unleash 21st century opportunities in our state.” But Amy Kim, global policy director and general counsel for the Chamber of Digital Commerce, said treating cryptocurrency transactions “differently than any other transactions” by taxing them sends the wrong message to the emerging industry.

 

“I think you see some states taking a restrictive approach, while others are looking to help foster the industry in their states,” she said. (BLOOMBERG BNA, LEXISNEXIS STATE NET)