The state of Ohio has become the first US state to accept bitcoin (BTC) as payment for taxes as of Monday, November 26.
The announcement has garnered much attention in the crypto community as it marks the first ever case in the world of a government accepting cryptocurrency for tax payments.
The legislation was spearheaded by Ohio Treasurer Josh Mandel, who has been driving his vision of establishing Ohio as the preeminent crypto-friendly US state.
Ohio has already been moving in this direction with the development of a legislative framework for rolling out blockchain technology for securing electronic records across a wide range of industries.
At this stage, the acceptance of bitcoin for tax payments in Ohio will only apply to businesses. But the state has said it has plans to roll out the option for individual taxpayers in the future.
The official Ohio Treasurer’s website states the reasons why they are adopting crypto payments:
“Cryptocurrencies cannot be transferred to third parties without user initiation, thereby practically eliminating fraud; Anyone can view all transactions on the blockchain network; Payments on the blockchain can be tracked on a second-by-second basis; a minimal fee is charged to confirm transactions on the blockchain network.”
Companies can register to pay their taxes in crypto at the website OhioCrypto.com and once registered, will be able to use crypto to pay 23 kinds of business taxes. These include sales tax, utility tax, to employee withholding taxes and more. BitPay, a crypto payments service provider based out of Georgia in the United States, will process all crypto tax payments.
Article by Mark Knowles, Coinlaw