Recently, a court in Nevada successfully ruled against a petition by local authorities to institute taxes for blockchain use. Since blockchain activities or application work to generate revenue just like any other business like applications, it is normal that the local authorities saw an opportunity to make money.
The deliberation made over a month ago depended on the Senate to decide whether to exercise the new law. However, for blockchain, the breakthrough came with the Senate unanimously voting against the law and making blockchain tax-free, meaning application users can enjoy the benefits of blockchain without the worry or extra costs.
So now it’s official: the Court and Senate unanimously uphold a tax ban on blockchain applications.
According to CoinDesk, the voting against the law was the first measure in preventing local officials from charging money to users to access the distributed ledger or smart contracts. So, what does the new bill stipulate?
No taxes for smart contacts
Since the law got rejected, the local authorities do not have jurisdiction to impose taxes on smart contracts by any person or entity. For blockchain users, it means they can enjoy the services stress-free as before.
Open access to blockchain applications
In the law presented before the Senate, a person looking to acquire any blockchain application needed to obtain a certificate from the local authorities. However, the new bill asserts that blockchain applications are free and nobody has to go through the local authorities to get certified. Users do not have to compromise on convenience presented by blockchain applications since it is free and accessible to all.
Block from imposing any other charges on blockchain applications
The new bill also prevents the local authorities from imposing any laws that will affect blockchain’s smart contracts and distributed ledger which seem like the most targeted blockchain applications. With the new efficiency in place, users can employ blockchain applications without the fear that they could get liable for tax evasion. It is safe to say that Blockchain applications are officially tax-free.