Bill > HB453

This bill establishes a new program requiring the Montana Department of Revenue (DOR) to accept state income tax payments using cryptocurrency through third-party payment processors, with several key provisions. The bill defines cryptocurrency as a digital or virtual currency that uses cryptography, operates independently of central authorities, and relies on blockchain technology for transaction recording. The DOR will be mandated to contract with payment processors that can convert cryptocurrency payments into U.S. dollars, ensuring the state receives tax payments in standard currency. Importantly, the bill clarifies that using cryptocurrency to pay state taxes will not trigger a taxable event for capital gains purposes, which means taxpayers won't incur additional tax liability from the cryptocurrency transaction itself. The program will be integrated into Title 15, Chapter 30 of Montana law and will become applicable for income tax years beginning after December 31, 2025. The department is authorized to adopt necessary rules to administer the program and must ensure taxpayers are informed about the capital gains tax treatment of cryptocurrency tax payments. This legislation represents an innovative approach to modernizing tax payment methods by formally recognizing and facilitating cryptocurrency as a valid form of tax payment.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC3160