Ohio to accept business tax payments in cryptocurrency
Ohio is becoming the first state in the U.S. to accept state tax payments through cryptocurrency.
Ohio Treasurer Josh Mandel announced Monday that the state is partnering with a payment processor called BitPay to launch OhioCrypto.com, a site that will allow businesses to pay their taxes with cryptocurrency. Currently, the site only accepts Bitcoin payments, but the Buckeye State hopes to add support for other cryptocurrencies in the future.
The site leverages blockchain technology to offer real-time tracking of tax payments. Cryptocurrency payments can’t be transferred to third parties without being initiated by the user. The site charges a nominal fee to confirm transactions and anyone can view all the transactions on the blockchain network.
“We are proud to make Ohio the first state in the nation to accept tax payments via cryptocurrency,” Mandel said in a statement. “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.”
The Treasurer’s office won’t be holding any cryptocurrency funds itself. Any payments made through OhioCrypto.com are immediately converted into U.S. dollars by BitPay before they’re deposited in a state account.
“The State of Ohio is the first major government entity offering its citizens the option to pay with cryptocurrency,” said BitPay CEO Stephen Pair in a statement. “With BitPay, Ohio can leverage blockchain technology and benefit from reduced risk and identity fraud as well as enabling quick and easy payments from any device anywhere in the world and get paid in dollars. This vision is at the forefront of moving blockchain payments into mainstream adoption.”
Ohio already gives businesses a number of ways to make tax payments, including through ACH credit, ACH debit, check and money order. The cryptocurrency payment option is just the newest means. There are 23 different types of business taxes eligible for payment on OhioCrypto.com, including the Commercial Activity Tax, Pass-Through Entity Tax, Non-Resident Motor Vehicle Sales Tax and Streamlined Sales Tax.