Nevada Becomes First US State to Ban Blockchain Taxes

Nevada has become the first state to ban local governments from taxing blockchain use.

CoinDesk reported yesterday that Nevada's legislature had cleared the bill, first introduced in March, and sent it to Governor Brian Sandoval for approval. that Gov. Sandoval approved the measure yesterday, enshrining it in state law.

In addition to preventing local governments from taxing the use of a blockchain or smart contract (or requiring a licensure for their use), the bill stipulates "if a law requires a record to be in writing, submission of a blockchain which electronically contains the record satisfies the law" – meaning that data from a blockchain can be introduced in "proceedings".

The measure enjoyed broad support in the Nevada legislature, public records show. The Senate advanced it by a 21-0 vote in April, followed by the House of Representatives, which also passed it unanimously.

It's the second blockchain-related bill to be signed into law in recent days. On 29th May, Arizona Governor Doug Ducey signed a bill that recognizes the legality of blockchain signatures and smart contracts.

Image via Shutterstock

DISCLOSURE

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

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Stan Higgins

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.