In what could be the biggest institutional nod of approval to cryptocurrencies across the globe, Ohio is set to become the first state to accept Bitcoin for tax payments.
Starting this week, Ohio businesses can pay anything from tobacco to public utilities tax on OhioCrypto.com, The Wall Street Journal reports. The website currently supports payments for 23 different types of tax.
Here’s the full list:
- 911 Wireless
- Cigarette / Other Tobacco Products
- Commercial Activity (CAT)
- Consumer’s Use
- Direct Pay Permit
- Financial Institution (FIT)
- Interest on Lawyers Trust Accounts (IOLTA)
- International Fuel Tax Agreement (IFTA)
- Kilowatt Hour · Motor Vehicle Fuel (MVFT)
- Municipal Net Profits
- Municipal Tax Electric Light & Telephone
- Natural Gas Distribution (Mcf)
- Non-Resident Motor Vehicle Sales Tax
- Pass-Thru Entity Tax (PTE)
- Petroleum Activity (PAT)
- Premium Insurance Tax
- Public Utilities Tax
- Sales Tax
- Seller’s Use Tax
- Severance Tax
- Streamlined Sales Tax (SST)
- Withholding Tax
The initiative was spearheaded by state treasurer Josh Mandel, who hopes the new payment option will not only make things easier for tax-payers but also establish Ohio’s status as a cryptocurrency trailblazer.
It’s not yet clear how many businesses plan to take advantage of the service, but Mandel told reporters he is “confident that this cryptocurrency initiative will continue.” From the looks of it, all Bitcoin payments on OhioCrypto will be processed by cryptocurrency payment provider BitPay.
The service will initially be available to businesses only, but there are plans to expand it to individuals in the future. “From mom and pop coffee shops to Fortune 100 companies, businesses now have the ability to pay their taxes with OhioCrypto.com,” the website reads.
A brief history of Bitcoin taxes
For the record, this is hardly the first time government entities have considered accepting payments in cryptocurrency.
Earlier this year, a San Francisco federal judge reportedly ordered a criminal to make a bail payment in Bitcoin. However, the decision was later rolled back, since the courts hadn’t exactly worked out how the whole transaction would work ahead of time.
Similarly, Seminole County in Florida announced plans to accept cryptocurrency for tax payments in May. But months later, the integration has yet to appear on the county’s website.
Indeed, despite some mild government interest in cryptocurrencies across the globe, it is somewhat unfortunate that Bitcoin is still more popular among tax scammers than actual tax authorities.
Maybe Ohio can kick off a new trend.