Bill S. 0451, which was introduced to the Senate of the Rhode Island last month, allows residents and companies of the state to make up to 10 Bitcoin payments worth less than $ 1,000 per month (or to sell the equivalent amount) without being subject to taxes on state capital gains.
The bill is an amendment to existing laws on state income tax and the exact language in the proposed legislation is as follows:
“Any sale of [b]Itcoin by a person or corporate in the Rhode Island is exempt from state taxation if the total sales value is less than a thousand dollars ($ 1,000) per day. The limit of the exempt state tax [b]The ITCOIN transaction must not exceed ten (10) sales for a cycle of thirty (30) days. “
And the account defines a “sale of [b]Itcoin “as” any transaction in which [b]Itcoin is sold or exchanged with another form of value, such as the Fiat currency or other physical or digital activities. “
The bill also clarifies that this exemption applies only at state level and that does not affect the federal tax obligation.
Based on the bill, individuals and companies that undertake with these types of bitcoin transactions exempt from taxes are responsible for keeping the registers of these transactions, including the total value of sales per day and should be prepared to provide these documents to the Rhode Island Revenue Department for Audit or conformity purposes.
In a deck of slides prepared by the Rhode Island Blockchain Council that was shared with the Bitcoin magazine, Chris Perrotta, Prime Minister, wrote that Bill S. 0451 disappearance would have helped to reduce the friction for the payments of digital activities.
He said that “the current tax implications of BTC has hindered its usefulness for the citizens of the Rhode Island and suffocate the economic activity”.
Perrotta also observed that the passage of this bill would stimulate the economic activity based on Blockchain in the State, making the Rhode Island one of the states at the forefront of this technology.
In addition, it also proposed that small businesses accept bitcoin for products and services as a means of stimulating economic growth.
So far, no other US state has introduced comparable invoices.
At the federal level, the only bill that proposed something similar is the Lummis-Gillibrand “Manager of financial innovation”, which provides a de minimus The tax exemption on Bitcoin transactions evaluated up to $ 200.