According to a report by the Wall Street Journal (WSJ) on Nov.25, Ohio seems set to be the first US state that will accept tax payments in Bitcoin. The move initially will apply only to businesses, but there are plans to extend the offering to individuals in the future. Starting this week all businesses that are based in Ohio will be allowed to register to pay their taxes in BTC.
Payments In BTC To Be Processed Through BitPay
According to WSJ, the tax payments in BTC will be processed through BitPay, a crypto payment service. The publication adds that the crypto-friendly move was initiated by Josh Mandel, the Ohio state treasurer, who told reporters he “wanted to plant a flag” for the state in regards to national cryptocurrency adoption.
He went on to state that he does see Bitcoin as a legitimate form of currency. Adding that he was confident the cryptocurrency initiative he has started was going to continue even after his term ends in January 2019.
The report goes on to state that Mandel had told journalists, as an elected state official he had the power to decide if his office accepts the virtual currency “without approval from the legislature or governor.”
Interestingly, there are several other bills in other U.S states over the past year that have been proposed to accept BTC for taxes; however, the lawmakers have delayed passing a final decision.
Earlier this year in February, the state of Georgia also introduced a bill to accept crypto as a legal form of payment for state taxes and licenses. But, as things stand now the bill reads “25% progression, died in committee.” Ohio may influence Georgia or other states to push to allow tax payments in Bitcoin.
Also in May of this year, the Arizona House of Representatives passed a tax bill that would allow its citizens to pay their taxes using crypto. However, after the vote, the initiative has been stalled by amendments.
Basil has three years of freelance experience writing on disruptive technologies. He focuses on breaking news and education pieces; helping to spread the gospel of Blockchain. He hopes to have his own blockchain company one day; helping the world through its innovative ledger technology.
