Phil Christofanelli, Missouri state representative in the U.S. House of Representatives, in the bill he presented of bitcoin demanded exemption from wealth tax at the state, county, and local levels.
Christofanelli said in his statement:
“Bitcoin, other cryptocurrencies and Blockchain I aim to keep our state of Missouri open to innovation and opportunity as applications become more prevalent in the market. This industry has the potential to lift Missouri to higher levels of economic and political freedom. I hope to pass this bill and similar bills in the next few years.”
State of Missouri to Evaluate Digital Assets Like Bitcoin in Three Different Categories
If the bill is passed, “digital assets” will be divided into three different categories according to the intended use of each asset.
According to the draft law, digital assets will be classified as “virtual currency” when they are used as “trading instrument, unit of account and value accumulation instrument”. Virtual currencies will be tax exempt.
According to the text of the draft law, the definition of “digital securities” will be used for “assets other than consumer assets or virtual currency, classified as securities as defined in section 409.1-102”.
The third category in which digital assets will be classified will be called “public blockchain tokens”. The definition of these tokens was determined as “digital units created in digital databases including blockchains”. According to the definition in the draft law, tokens must also have the ability to be transferred without the need for any third party.
According to the bill, Blockchain tokens whose main purpose is consumption rather than investment can be classified as “intangible digital property”.
The bill also states that anyone wishing to issue a blockchain token in the state is required to send a statement of intent to the authorities and pay a fee of $1,000.
*Not investment advice.