A proposed law in New Hampshire that would allow residents to pay their taxes with cryptocurrency is seeing some early traction.

House Bill 470, which would allow state-level agencies (including New Hampshire's tax office) to accept cryptocurrencies for payment if approved, cleared its first minor hurdle last week after being passed unanimously by a subcommittee on the House Executive Departments and Administration Committee, with amendments.

The subcommittee – composed of Reps. Mark Proulx, Jaci Grote, Carol McGuire and Samantha Fox – voted to add some protections for the state as an amendment, ensuring that if a transaction fails or is sent to the wrong address, New Hampshire can still collect on the appropriate taxes.

That being said, the amendment is more technical than substantial, McGuire said, explaining:

The text of the formal amendments was not available at press time. There will be another subcommittee work session on Feb. 13, according to Legiscan.

If the bill is approved by the House and Senate, and signed by Governor Christopher Sununu, it would direct the state treasurer to determine how it may accept cryptocurrencies for tax payments by November 2019. Actual acceptance of cryptocurrencies would then commence in July 2020.

State agencies would have to partner with a to-be-determined third-party processor to convert funds into fiat, similarly to how Ohio currently processes its own crypto tax payments.

New Hampshire sign image via Mark Van Scyoc / Shutterstock