In a period where the bears are in full control of the crypto market, good news about cryptocurrency adoption is very much needed. Ohio is helping the market a bit by announcing that the US state will now allow business to pay their taxes with Bitcoin. With that, Ohio is ‘planting a flag’ for Bitcoin adoption.
It’s probably the best news we have received in a while: according to the Wall Street Journal, starting this week, Ohio businesses will have a new way to pay their taxes: Bitcoin. The news can be seen as one of the biggest institutional nod of approval to cryptocurrencies across the globe.
State Treasurer Josh Mandel pioneered the idea in Ohio and as of this week, the plan has been put in motion. Companies in the state of Ohio will be able to make Bitcoin tax payments using OhioCrypto.com. The payments will be processed by U.S company BitPay who make the conversion to U.S dollars for the Ohio government.
The website currently supports payments for 23 different types of tax that businesses can pay with Bitcoin, ranging from cigarette and tobacco taxes to fuel and sales taxes. Here is 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
With the initiative, Josh Mandel hopes that Ohio’s status as a cryptocurrency trailblazer will increase. Mandel proposed the integration of Bitcoin to the state to facilitate the growth of the local cryptocurrency industry, stated that Mandel sees the dominant cryptocurrency as a legitimate form of currency.
Josh Mandel said:
“I do see [bitcoin] as a legitimate form of currency,”
Mandel’s term in the office will end in January, but he is confident that the state will keep the new form of tax payment when he leaves. He said:
“I’m confident that this cryptocurrency initiative will continue.”
The service will initially be available to businesses only, but there are plans to expand it to individuals in the future. The website reads:
“From mom and pop coffee shops to Fortune 100 companies, businesses now have the ability to pay their taxes with OhioCrypto.com.”
While Ohio’s initiative doesn’t grant the cryptocurrency a legal status, “it would be a kind of tacit approval bitcoin has so far lacked,” Paul Vigna notes in the Wall Street Journal. Arizona, Georgia, and Illinois have each considered similar programs, but those haven’t made it through their respective legislatures (yet).