chepicap.com
The state of California just introduced a new bill that will allow cannabis-related business owners to pay their taxes in cryptocurrency.
According to Coindesk, the Assembly Bill 953, which was introduced on February 21st will be enforced from January 1st, 2020.
When it comes to financial matters, cannabis-related businesses in the US are still facing a dilemma, although the business itself has been legalized in several states.
Such businesses are still having difficulties getting simple financial services from banks due to financial institutions are actually prohibited from servicing an industry that’s illegal under the federal law.
Tax payment is also a challenge for cannabis business owners. They often have to drive a long way to the state tax offices only to pay their tax obligations.
“Duffle bags and sometimes suitcases of cash would arrive quarterly at some of our designated offices and some business owners had to drive 350 miles to pay their taxes,” said California State Treasurer Fiona Ma in a hearing before the U.S. House Committee on Financial Services.
This issue grabbed the attention of Dash network and encouraged them to accommodate cannabis businesses in their platform since 2017.
Tax payment in crypto has also been proposed by several other states in the US, such as New Hampshire that just proposed a bill to accept Bitcoin for tax earlier this year.