HB 470-FN - AS INTRODUCED
HOUSE BILL 470-FN
SPONSORS: Rep. Acton, Rock. 10; Rep. Yakubovich, Merr. 24
COMMITTEE: Executive Departments and Administration
This bill requires the state treasurer to develop an implementation plan for the state to accept cryptocurrencies as payment for taxes and fees and allows state agencies to accept payment in cryptocurrencies after July 1, 2020.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nineteen
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Implementation Plan for the State to Accept Cryptocurrencies as Payment for Taxes and Fees. The state treasurer, in consultation with the commissioner of the department of revenue administration and the commissioner of the department of administrative services, shall develop an implementation plan for the state to accept cryptocurrencies as payment for taxes and fees beginning July 1, 2020. The plan shall address any accounting, valuation, and management issues relative to the acceptance of cryptocurrency and shall identify an appropriate third party payment processor that will process cryptocurrency transactions at no cost to the state. On or before November 1, 2019, the state treasurer shall submit the plan to the governor, the speaker of the house of representatives, the senate president, the house clerk, the senate clerk, and the state library. Pursuant to any criteria or procedures established in the implementation plan, a state agency may accept payment in cryptocurrencies on or after July 1, 2020.
HB 470-FN- FISCAL NOTE
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
Estimated Increase / (Decrease)
[ X ] General [ ] Education [ X ] Highway [ X ] Other
This bill requires the State Treasurer, in consultation with the Commissioner of the Department of Revenue Administration (DRA) and the Commissioner of the Department of Administrative Services (DAS,) to develop an implementation plan for the state to accept cryptocurrencies as payment for taxes and fees beginning July 1, 2020. The plan shall address any accounting, valuation and management issues and also identify an appropriate third party payment processor that will process cryptocurrency transactions at no cost to the state. The State Treasurer is required to submit the plan to the Governor, House and Senate by November 1, 2019. State agencies may accept payment in cryptocurrencies on or after July 1, 2020 pursuant to the plan.
The State Treasurer indicates current RSA 6:11, VII directs all payments due to the state for services provided shall be paid in "United States dollars" and any payment received in any other currency to be returned to the payor. Assuming legislation is approved to amend this statute, the issues of valuation and currency risk are heightened by the volatility of cryptocurrency (bitcoin) fluctuations in value against the U.S. dollar. Tax payments received by the state would need to be converted to U.S. dollars or alternatively, mitigate such risk by continually monitoring cryptocurrency levels held by the state to ensure there is as much demand for state payments to vendors and payees as the state has in its "inventory". Ongoing administrative costs for Treasury, DRA and DAS (vendor procurement) would increase state expenditures by an indeterminable amount. Treasury is unable to predict whether a third-party payment processor would process cryptocurrency services as no cost to the state. It is possible such processor would charge a per-transaction fee to the payor.
The Department of Administrative Services indicates that in addition to fluctuations in value over time, it cannot be determined whether the acceptance of cryptocurrency payments would result in a dollar loss or gain to the state. The bill permits state agencies to accept such payments, but it is not compulsory that they do so. DAS indicates that without a plan, lack of knowledge of the future value of cryptocurrencies and which agencies may choose to accept cryptocurrencies, and whether an appropriate third party payment processor that will process cryptocurrency transactions at no cost to the state can be identified, the fiscal impact of this bill cannot be determined.
The Department of Revenue Administration indicates the agency would need to work with the e-file vendor to make programming changes. These changes would increase DRA expenditures by an indeterminable amount in FY 2020, in anticipation of an implementation date of July 1, 2020. DRA cannot estimate if any additional revenue would be generated due to the acceptance of cryptocurrencies. The volatility of accepting cryptocurrencies could affect revenues due to tax assessments being generated in U.S. currency.
State Treasury, Department of Administrative Services, and Department of Revenue Administration
|Jan. 23, 2019||House||Hearing|
|Feb. 19, 2019||House||Exec Session|
|Nov. 6, 2019||House||Exec Session|
|Jan. 3, 2019||Introduced 01/03/2019 and referred to Executive Departments and Administration HJ 3 P. 15|
|Jan. 23, 2019||Public Hearing: 01/23/2019 10:00 am LOB 306-308|
|Jan. 29, 2019||Subcommittee Work Session: 01/29/2019 09:00 am LOB 306|
|Feb. 13, 2019||Subcommittee Work Session: 02/13/2019 11:30 am LOB 306|
|Feb. 19, 2019||Executive Session: 02/19/2019 10:30 am LOB 306|
|Retained in Committee|
|Oct. 1, 2019||Subcommittee Work Session: 10/01/2019 01:00 pm LOB 306|
|Oct. 15, 2019||Subcommittee Work Session: 10/15/2019 10:00 am LOB 308|
|Nov. 6, 2019||Executive Session: 11/06/2019 01:00 pm LOB 306|
|Committee Report: Inexpedient to Legislate (Vote 17-1; CC) HC 50 P. 9|
|Jan. 8, 2020||Inexpedient to Legislate: MA VV 01/08/2020 HJ 1 P. 43|