By Alicia Maher
Illinois state senate has received a new bill that will enable Illinois residents to pay their taxes to the state’s revenue department via crypto as simple as paying it via credit card. Margaret Croke is the sponsor of the bill (house bill 5287) that will authorize the Illinois revenue department (IDR) to develop the terms and conditions attached with settling tax payments with cryptos.
Why I Sponsored The Bill – Croke
When the media asked Croke why she sponsored the bill, she replied that the IDR has severally expressed its willingness to accept crypto payments for taxes as it does with credit cards. Croke, a representative of the 12th district and a democrat, also remarked that “we already have a 3rd party that processes credit card payments for revenue collection such as taxes.”
She continued saying, “Hence, it won’t be a bad idea to have an alternative whereby anyone can settle their financial transactions through crypto while the state receives the payment in USD.” Croke further revealed that the IDR would decide which cryptos it would accept for revenue collection, including tax payments. However, small and medium-scale enterprises can expect that they can pay their taxes through cryptocurrencies.
Following the bill’s passage by the house, the bill was passed to the state’s senate late last month. Croke is convinced that the bill will be passed within the next 40 days as there aren’t any issues with it that should warrant any delay.
Operating Within The Present Rules
While Illinois’ crypto move is similar to what obtains in Arizona and California, Croke quickly clarified that the bill only seeks to ensure that cryptos can be used for tax payment purposes and not be accepted as a legal tender. According to her, accepting cryptos as a legal tender violates the present federal rules regarding digital assets. She explained that the Constitution authorizes only Congress to define what legal tender means.
The 12 district rep also said, “while we want to move quickly as a state on this matter, we also want to ensure that we play by the present rules. Thus, the federal government won’t have to overturn our decision and force us to go over the whole process again to modify this bill. It will be disheartening and a waste of effort to have implemented this bill, then after one year, the federal government comes around to usurp this decision.”
Clarity On Crypto Guidelines Is A Necessity
She further opined that the federal government should be faster in clarifying crypto guidelines even as the states are making their crypto laws. Croke further said, “I’m excited about the motivation members of the house and senate have about this bill. It shows our strong desire to have a structured crypto ecosystem.” Croke’s other bill (house bill number 3968) will be modified after the office of the currency comptroller modified its policy page recently.