Nevada Lawmaker Moves to Block Taxes on Blockchain Transactions

A new bill filed in the Nevada Senate aims to prevent local authorities from imposing fees or taxes on the use of blockchain tech.

AccessTimeIconMar 21, 2017 at 1:42 p.m. UTC
Updated Aug 18, 2021 at 5:56 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

A new bill filed in the Nevada Senate would, if passed, prevent local authorities from imposing fees or taxes on the use of a blockchain.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • , filed yesterday and introduced by Senator Ben Kieckhefer, seeks in part to create a legal basis under state law for the use of blockchain-based records and contracts.

    Notably, the bill would also prohibit local governments from taxing the use of the tech or requiring the use of a licensure for that purpose.

    The proposed legislation states:

    "A local governmental entity shall not: (a) Impose any tax or fee on the use of a blockchain or smart contract by any person or entity; (b) Require any person or entity to obtain from the local governmental entity any certificate, license or permit to use a blockchain or smart contract; or (c) Impose any other requirement relating to the use of a blockchain or smart contract by any person or entity."

    The bill’s impact wouldn’t be limited to those potential economic costs, however.

    Kieckhefer's proposal would prohibit the exclusion of blockchain records in "proceedings", noting at one point that "if a law requires a record to be in writing, submission of a blockchain which electronically contains the record satisfies the law".

    "A smart contract, record or signature may not be denied legal effect or enforceability solely because a blockchain was used to create, store or verify the smart contract, record or signature," the bill goes on to state. "In a proceeding, evidence of a smart contract, record or signature must not be excluded solely because a blockchain was used to create, store or verify the smart contract, record or signature."

    The proposal is similar to a bill put forward in Arizona last month, constituting a further move to legitimize the use of blockchain records at the state level, with a previous effort also being pursued last year in Vermont.

    Nevada State Capitol image via Shutterstock

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.