Ohio Becomes the First State to Accept Bitcoin for Tax Payments
Is not it revolutionary that Ohio becomes the first state to accept Bitcoin for tax payments? Yes, you are right. The long-awaited decision taken by Ohio State has fulfilled the desire of few people in the crypto-currency world. It has made the Ohio State the first in the nation to accept Bitcoin officially. Even after that people raise the question against the legality of Bitcoin and mining of it.
Ohio has become the first state in the nation to accept “Bitcoin” crypto-currency on November 26, 2018. It has allowed 23 eligible business-related taxes ranging from sales tax to severance taxes on oil and gas. Any business operating in Ohio State can use a portal to pay money for up to 23 taxes. This also includes cigarettes and tobacco products with a little transaction fee. There is also no transaction limit.
According to The Wall Street Journal, any company that wants to take part in this program simply go to https://ohiocrypto.com/. They can register to pay in crypto whatever taxes the corporate heart desire.
“Under the Ohio Treasurer Josh Mandel’s leadership, taxpayers will be able to pay their business-related taxes. They can use Bitcoin crypto-currency for the first time anywhere in America”, explains the Ohio crypto website. “Ohio State is one of the first States in the United States to go with Crypto-currency. It has also become one of the first governments in the world to accept crypto-currency.”
How Does It Work?
If businessmen operate a business in the State of Ohio and have a tax bill. They can register online at https://ohiocrypto.com/ to pay his taxes related to 23 different eligible business-related taxes. The Treasurer’s office will not be holding, mining, and investing in crypto-currency for any payment or processing related to taxes. All crypto-currency payments process by a third-party crypto-currency payment processor, named BitPay. Those payments convert in to dollars before depositing into a state account.
Taxpayers paying through crypto-currency will charge a transaction fee, network fee, and miner fee. The miner fee will be shown in the taxpayer's wallet and not on OhioCrypto.com. The transaction fee charges at 0% during the initial three months introductory period. There is a minimal fee of 1 percent for the transaction as compared to 2.5 percent assessed for credit cards. Fees are user’s fees and State funds will not supplement it. According to the Treasurer office’s statement, Ohio State will not pay any fee to BitPay. It will not also pay to any other company fees for transaction or processing services relating to the crypto.
“With BitPay, Ohio State can leverage the benefits of blockchain technology and other benefits from reduced risk and identity fraud as well as enabling easy and quick payments from a device anywhere in the world and can get paid in dollars" Stephen Pair, CEO, and co-founder of BitPay included in a statement. This vision will help at the forefront of moving blockchain payments into mainstream adoption.
You just need to use Payment Protocol-compatible wallets to pay any tax. Those generally include BitPay
Wallet, Copay Wallet, BTC.com Wallet, Mycelium Wallet, Electrum Wallet, Edge Wallet, Bitcoin Core Wallet, Bitcoin.com Wallet, BRD Wallet, and Bitcoin Cash Wallets. If you do not possess any of these wallets. Go to http://ohiocrypto.com/ it will advise you to create one and send some coin in it.
Ohio State Protection Against Market Volatility
The value of both crypto-currencies Bitcoin or Ethereum, have reached to its higher over the past year. The Bitcoin price has plummeted from $20,000 to about $3,660, while Ether has dropped down to $106 from $1,400.
According to Ohio’s Treasurer Office, the state and taxpayers protection ensure against any market volatility. BitPay has set the exchange rate for a 15-minute approved time window for each transaction done. Once business taxpayer starts to make payment at OhioCrypto.com. BitPay then assumes any risk of market fluctuations during the allotted time frame.
Lawmakers in Georgia, Arizona, and Illinois have filed legislative proposals for using Bitcoin to pay the State governments. All those attempts died without concrete resolution or vetoed. In the year 2016, New Hampshire lawmakers dropped down a bill to give right of tax payment for residents. In the year 2015, the Utah Senate also passed a similar bill but it also died in the House.
The decision taken by Ohio State to accept Bitcoin is really revolutionary in its way. So now, Ohio becomes the first state to accept Bitcoin for tax payments. So the people are really excited as their demand for Bitcoin acceptance has been fulfilled after analyzing the cryptocurrency's market trend. This is really unique in its way. In the starting, only some of the tax services include to buy through crypto-currency. And in near future chances of its acceptance will increase. People of Ohio State are also eager to know more about this revolutionary step in the crypto sphere.