Tax payment will now be more convenient for Ohioans.
According to the new payment scheme, using cryptocurrency as tax payment is not applicable to all individuals. Ohio will launch OhioCrypto.com, which will make the state the first in the US to accept cryptocurrency as tax payments. At the moment, only business organizations operating in Ohio are allowed to do so.
“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 Treasurer Josh Mandel stated.
If business owners operate in the Ohio state and have tax bills, they can register online at OhioCrypto.com to pay their taxes. They can do tax payment on any 23 qualified business-related taxes with no limit on transactions.
The Office of the Treasurer is not keeping, mining, or even capitalizing in cryptocurrency for payments or processing. Bitpay is a third-party cryptocurrency payment processor that will handle all tax payments in cryptocurrency. Instantly, all of the payments are converted to dollars before it gets deposited into a state account.
The proposal was compelled by the state treasurer who claimed that being directly elected doesn’t require the governor or the state legislature’s official approval – which is something that hindered a couple of other endeavors to accept Bitcoin as a kind of payment like tax payments in states such as Georgia, Illinois, and Arizona.
Mandel guarantees that the state’s treasury endures minimum exposure to the mutable digital currency. BitPay in return for its exclusive contract with the state will absorb any variations in the currency and after a three-month “introductory period” without charging anything, the bitcoin payment service provider will impose a 1% transaction fee. He stressed that the commission is notably not more than the 2.5% fee that credit card firms usually charge.