NEWSLETTER
Bill S. 0451which was introduced into the Rhode Island Senate last month, it allows residents and companies of the State to compensate up to 10 payments in bitcoin valued in less than $ 1,000 per month (or sell the equivalent amount) without being subject to taxes on state capital gains.
The bill is an amendment to the existing laws of the State Income Tax, and the exact language in the proposed legislation is as follows:
“Any sale of (b) Itcoin by an individual or company in Rhode Island will be exempt from state taxes if the total value of sales is less than a thousand dollars ($ 1,000) per day.
And the bill defines a “sale of (b) ITCOIN” such as “any transaction in which (b) Itcoin is sold or exchanged for another form of value, such as fiduciary currency or other physical or digital assets.”
The bill also clarifies that this exemption is only applied at the state level and that it does not affect federal tax obligations.
According to the bill, the people and companies that are involved with this type of bitcoin transactions exempt taxes are responsible for maintaining records of these transactions, including the total value of sales per day, and must be prepared to provide these records to the Rhode Island Revenue Department for the audit or compliance purposes.
On a slide cover prepared by the Rhode Island Blockchain Council That was shared with bitcoin magazine, Chris Perrotta, president of the Council, wrote that the approval of Bill S. 0451 would help reduce friction for digital asset payments.
He said that “the current tax implications of the btc spending hinder their usefulness for Rhode Island citizens and suffocate economic activity.”
Perrotta also pointed out that the approval of this bill would stimulate the economic activity based on blockchain in the state, which makes Rhode Island one of the states at the forefront of this technology.
In addition, he also proposed that small businesses accept bitcoin for products and services as a means to stimulate economic growth.
So far, no other United States has introduced comparable bills.
At the federal level, the only bill that has proposed something similar is the Lummis-Gillibrand “Responsible Financial Innovation Law”which provides a About at least Tax exemption in bitcoin transactions valued up to $ 200.
