Starting this week, Bitcoin can be used to pay a variety of taxes. BitPay, a global Bitcoin payment service headquartered in Atlanta, will process these payments for the Treasury, converting BTC to US dollar, according to a report from The Wall Street Journal. At the moment, only BTC is accepted, with more cryptocurrency additions expected in the future.
The companies must register on the OhioCrypto.com portal, and enter tax details like state registration number, payment amount and tax period. The amount due is paid with BTC using a wallet compatible with the Bitcoin Payment Protocol, like Mycelium. The Treasurer’s office will use BitPay to process the payments.
This makes Ohio the first state in the US to accept tax payment using a cryptocurrency. The site’s FAQ lists 23 taxes eligible for payment this way- Motor Vehicle Fuel [MVFT], Municipal Tax Electric Light -amp; Telephone, Public Utilities Tax, to name a few.
The Ohio Treasurer’s office will be “leveraging technology to offer cutting-edge tools and services to Ohioans”. The benefits of this payment method include quick and secure payments, real time tracking, and transparency.
Companies operating in and paying taxes to Ohio, are eligible to pay by registering on OhioCrypto.com, the cryptocurrency tax payment portal. Steps like these will ensure the state is seen as friendly by the cryptourrency community. Josh Mandel, Ohio State Treasurer, has told The Wall Street Journal that he “sees it [Bitcoin] as a legitimate form of currency.”
Other states reported to be considering cryptocurrency for tax payment purposes are Illinois, Arizona and Georgia. However, their plans had to be scrapped. In Arizona, the bill did not receive enough votes to pass. The fact that attempts are being made to incorporate cryptocurrencies, should be seen as a big step in “leigitimising” cryptocurrencies. Ohio has shown that Bitcoin is a tool that need not be used only for illicit activities, and which must be regarded as a big PR boost for cryptocurrencies.