Bill S. 0451The bill, introduced in the Rhode Island Senate by the governor last month, allows residents of the state to pay up to 10 bitcoin payments per month valued less than $1000 (or to sell an equivalent amount), without having to be subjected to capital gains tax.
It is a bill that amends the existing laws on state income taxes.
“Any sale of [b]itcoin by an individual or business in Rhode Island shall be exempt from state taxation if the total value of sales is less than one thousand dollars ($1,000) per diem. The limit of the state tax exempt [b]itcoin transaction shall not exceed ten (10) sales per a thirty (30) day cycle.”
It is a bill that defines the term ‘a “sale of [b]itcoin” As well as “any transaction in which [b]itcoin is sold or exchanged for another form of value, such as fiat currency or other physical or digital assets.”
This bill clarifies, too, that the exemption is only applicable at state-level and does not affect federal tax obligations.
According to this bill, businesses and individuals who conduct tax-free bitcoin transactions must keep detailed records on their transactions. This includes the daily total of all sales and the amount of each transaction. These records should be provided to the Rhode Island department of revenue to audit and comply with the law.
The slide presentation prepared by the Rhode Island Blockchain Council Chris Perota wrote in a letter to Bitcoin Magazine that the passage of Bill S.0451 will help reduce friction when it comes to digital currency payments.
He said that “current tax implications of spending BTC hamper its utility for Rhode Island citizens and stifle economic activity.”
Perota noted, too, that this bill will stimulate economic activity based on blockchain technology in Rhode Island. This would make Rhode Island the leading state for this new technology.
In addition, he suggested small businesses should accept bitcoin as payment for goods and services in order to promote economic growth.
No other U.S. state has introduced similar bills.
Only one bill has been introduced at the federal government level that is similar. Lummis-Gillibrand “Responsible Financial Innovation Act”The. Minimum Tax exemption for bitcoin transactions up to a value of $200
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Source: bitcoinmagazine.com
