Vermont Senator Proposes Digital Currency Tax Legislation

Latest Vermont Bill Discusses State Entities Utilizing Emerging Technology, While Digital Currency LLCs Could Pay Taxes In Crypto 

The Windsor District Democrat, Alison Clarkson, recently introduced a bill that discusses various government statutes and the use of cryptocurrencies. The proposed legislation will be seen by the state’s Committee on Economic Development, Housing and General Affairs. 

The entire bill covers the use of digital assets tethered to blockchains and various digital currency solutions. Subchapter twelve discusses digital currency limited liability companies which include physical presence, taxation, and exemptions for such entities. 

Within this section, the company must reside in the state of Vermont and can pay its taxes using a cryptocurrency transaction. 

The S.269 proposal explains: A digital currency limited liability company shall remit to the State in the form of its digital currency a transaction tax equivalent to $0.01, at the then current exchange rate for the currency with the U.S. dollar, per transaction for: each unit of currency mined or otherwise created; and each sale or other transfer of one or more units of currency. 

Section thirteen of the bill asks for research and a report concerning the “opportunities and risks” of adopting blockchain technology and cryptocurrency operations used within Vermont state government. 

The study and report shall be reviewed by officials such as the Secretary of State, the Commissioner of Financial Regulation, and the Attorney General alongside members of the Vermont Law School. Additionally, Clarkson’s proposal wants to a create a Summit in the state that “explores opportunities that promote financial technology and economic development in the private sector, including in the areas of banking, insurance, retail and service businesses, and cryptocurrency providers and proponents.” 

  

In the U.S. the state of Vermont has been very friendly towards bitcoin and digital currencies. Last May the state added bitcoin as a ‘permissible investment’ and also defined the nature of virtual currency transmissions in Vermont’s code of law. 

The year prior the governor signed a law that made records created on a public blockchain admissible within the state’s court system. Clarkson’s bill S.269 discusses many types of technologies tied to cryptocurrency adoption such as the use of nodes and the concept of forking as well.