Illinois Has Been Quietly Considering Bitcoin for Tax Payments

Legislators in Illinois are weighing a proposal to allow residents in the state to pay their taxes in cryptocurrency.

With the move, Illinois joins a growing list of U.S. states that are considering such measures, and the bill – filed in February and previously unreported – marks the third effort of its kind to emerge in 2018. The trend got started in January with Arizona, then Georgia lawmakers threw their hat in the ring the following month.

Illinois' House Bill 5335 states:

"[I]n addition to any other method of payment provided for by law, the Department shall accept payment for any tax imposed by the State and administered by the Department by cryptocurrency."

The language in the Illinois measure – proposed by Representative Michael J. Zalewski and initially submitted on Feb. 15 – largely mirrors the other two proposals, calling for tax officials to accept cryptocurrency and convert the payments to U.S. dollars within a day.

Public records indicate that on March 5, the bill was passed to the Illinois House Revenue and Finance Committee for deliberation.

As with the bill in Georgia, it remains to be seen whether the legislation will attract the kind of interest the idea has garnered in Arizona. CoinDesk previously reported that members of Arizona's Senate passed its bill in a 16-13 vote on Feb. 8. That measure is now being considered by the state House of Representatives.

Illinois House image Shutterstock