U.S State of Ohio First To Accept Bitcoin for Taxes
The U.S. state of Ohio is the first in the country to allow its residents to settle local taxes using bitcoin.
The move was hailed as one that “planted a flag” for crypto adoption in a state that has increasingly become supportive of crypto and the underlying blockchain technology.
According to the state tax department, firms and businesses hoping to clear their state taxes via cryptocurrency would need to open OhioCrypto.com, register their business and login to pay the due taxes.
With the move, Ohio residents are now free to use bitcoin to settle taxes from cigarette and tobacco sales, fuel levies, and employee withholding tax among others.
The report first appeared in the Wall Street Journal and revealed that the idea to allow bitcoin payments was mooted by (now former) state treasurer Josh Mandel.
According to Mandel, crypto adoption would give the ‘Buckeye State’ room to continue its push for everyday use of emerging technology.
The OhioCrypto.com’s FAQ contains key information that is both educative and informative, including the view that the decision to accept BTC was mainly due to its capacity to help parties transact instantly and securely. It also ensures that transactions are transparent, a critical part of tax administration.
Ohio integrated services provided by cryptocurrency payments processor BitPay, which receives the tax paid in bitcoin and instantly converts the crypto into fiat. The funds are then forwarded to the Ohio tax office accounts in U.S. dollars.
So far, Ohio has received tax payments in bitcoin from two businesses, the state’s treasurer Robert Sprague said at a recent forum.
Although the numbers aren’t great, it illustrates the capacity for crypto to be used in everyday payments as a currency and medium of exchange.
And that may bolster efforts from the state’s lawmakers who have introduced various bills in Congress aimed at promoting Ohio as a blockchain and crypto hub.
In November, former state treasurer Mandel told Bloomberg that Ohio’s “biggest motive” was to afford its taxpayers access to different payment options for settling taxes.
Ohio’s move inspired other states in the United States to consider accepting cryptocurrencies for local taxes, including Arizona, Georgia, Delaware, Wyoming, and Illinois.
It also triggered a similar call across the big pond as a U.K. lawmaker urged the British parliament to consider allowing citizens to pay their taxes or utility bills using cryptocurrency.