Cryptocurrency Regulation

Ohio is the first U.S. state where businesses can pay taxes with Bitcoin

November 27, 2018

Ohio is the first U.S. state where businesses can pay taxes with Bitcoin

Ohio has become the first U.S. state allowing registered businesses to pay taxes with Bitcoin. Businesses operating in the state will have the option to use Bitcoin to pay for 23 different types of taxes.

According to Huffington Post, the law signed by the Ohio authorities states that all kinds of taxes, including sales and public utility taxes, can be paid with Bitcoin.

“We are proud to make Ohio the first state in the nation to accept tax payments via cryptocurrency… We’re doing this to provide Ohioans more options and ease in paying their taxes and also to project Ohio’s leadership in embracing blockchain technology,” Ohio State Treasurer, and author of the initiative, Josh Mandel announced.

Mandel who previously called Bitcoin a “legitimate form of currency,” expressed hope in an interview to The Wall Street Journal that with this step Ohio will be a good example which other U.S. states may follow.

He added that though at this moment the only accepted cryptocurrency will be Bitcoin but the state authorities are planning to add more crypto options in the future.

In order to pay taxes with Bitcoin, the entrepreneurs should register in the portal The payment implementation will be organized via a third-party processor BitPay, which will accept the cryptocurrency and convert it into dollars. The AP reported that a 1% fee will be applied to each transaction.

In addition, previously the opportunity to pay taxes with Bitcoin was considered by a number of U.S. states, including Arizona, Illinois and Georgia, but relevant laws are not adopted yet. This summer, Seminole County in Florida began accepting cryptocurrency for payment for various services.