Rhode Island Proposes Tax Exemption for Bitcoin Transactions

According to PANews, a new bill, No. 0451, was submitted to the Rhode Island Senate last month, proposing that residents and businesses in the state can conduct up to 10 Bitcoin transactions per month, each valued under $1,000, without incurring state capital gains tax. The bill defines 'Bitcoin sales' as any transaction exchanging Bitcoin for fiat currency or other physical/digital assets. It emphasizes that this exemption applies only to state taxes and does not affect federal tax obligations. Participants in these tax-exempt transactions must maintain complete transaction records, including daily totals, and be prepared for audits by the state tax department. Chris Perrotta, Chairman of the Rhode Island Blockchain Council, stated that the bill's passage would effectively reduce friction in digital asset payments and stimulate the state's blockchain economy, positioning Rhode Island as a leader in technology. He also suggested that small businesses accept Bitcoin for products and services to boost economic growth. To date, no other U.S. states have proposed similar legislation.