House Engrossed Senate Bill
State of Arizona
Second Regular Session
SENATE BILL 1091
Amending sections 42-5018 and 43-505, Arizona Revised Statutes; relating to tax payments.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 42-5018, Arizona Revised Statutes, is amended to read:
42-5018. Method of payment
A. All remittances of taxes imposed by this article shall be made by bank draft, check, cashier's check, money order, cash or electronic funds transfer to the department, which shall issue receipts therefor to the taxpayers, but no remittance other than cash shall be final discharge of liability for the tax levied by this article until it has been paid in cash to the department.
B. In addition to the methods described in subsection A of this section, the department may develop, adopt and use a payment system that enables the immediate remittance and collection of tax in real time at the point of sale, including payments of additional amounts after audit.
Sec. 2. Section 43-505, Arizona Revised Statutes, is amended to read:
43-505. Tax payments made to department; order of crediting
A. The tax and any interest and penalties shall be paid to the department. Remittances may be in the form of a check payable to the department during such a time and under such regulations as the director may prescribe. If a check is not paid by the bank on which it is drawn, the taxpayer tendering the check shall remain is liable for the payment of the tax and all interest and penalties as if he had the check were not tendered the check.
B. The department shall study whether a taxpayer may pay the taxpayer's income tax liability by using a payment gateway, such as bitcoin, litecoin or any other cryptocurrency that uses electronic peer‑to-peer systems. The department shall study the conversion of cryptocurrency payments to United States dollars at the prevailing rate after receipt and shall study the process of crediting the taxpayer's account with the converted dollar amount actually received less any fees or costs incurred by the department for conversion.
B. C. The department shall credit payments against a taxpayer's unpaid tax liability before crediting payments against any interest or penalties.
Sec. 3. Income and transaction privilege taxes; technology‑based payment system; demonstration project; report; delayed repeal
A. The department of revenue may design, develop and provide for trial demonstrations of the adaptation, application and use of technology to enable immediate remittance and collection of income tax payments and transaction privilege tax payments at the point of sale and for payments of additional amounts after audit.
B. For the purposes of this section, the department may:
1. Contract with one or more private vendors and consultants.
2. Identify practical issues, limitations and adaptations in the systems and procedures of the department.
3. Identify legal issues and recommend legislation that may be necessary to enable the full application of new technology.
C. If the department engages in a demonstration project under this section:
1. The department shall prepare a report of its findings and experiences on or before January 1, 2021.
2. Submit copies of the report to the governor, the president of the senate, the speaker of the house of representatives, the chairpersons of the senate finance and the house of representatives ways and means committees and the secretary of state and post the report on the department's website.
D. This section is repealed from and after June 30, 2021.