This bill aims to revise cryptocurrency laws in Montana by directing the Department of Revenue to implement a program that allows taxpayers to pay state income taxes using cryptocurrency through third-party payment processors. The bill includes definitions for "cryptocurrency" and "third-party payment processor," and mandates that the Department of Revenue ensure all tax payments received in cryptocurrency are converted to United States dollars. Additionally, the bill grants the Department the authority to adopt necessary rules for administering this program.

Importantly, the bill clarifies that tax payments made with cryptocurrency will not be considered a taxable event for state capital gains taxation purposes. This provision is intended to inform taxpayers that using cryptocurrency for tax payments will not trigger capital gains taxes. The act is set to apply to income tax years beginning after December 31, 2025, and the new sections are intended to be codified as part of Title 15, chapter 30 of the Montana Code.