Ohio State Treasurer Says Only Two Bitcoin Tax Payments Have Been Made to Date
In November 2018, we reported a story about Ohio becoming the first ever American state to accept bitcoins as a payment to resolve tax bills. It had permitted businesses to register with the state via OhioCrypto.com to, “pay everything from cigarette sales taxes to employee withholding taxes with bitcoin.”
However, things did not go as smooth as anticipated. Recently, Republican Treasurer Robert Sprague was asked about his office’s experiences with the bitcoin payment option set up in December by his predecessor, Josh Mandel.
Sprague said that the treasurer’s office has received only two tax payments through the state’s bitcoin payment platform. He added that further project developments are needed:
“We’re reviewing how [the program] might be either curtailed or might be expanded, and what our counter-party risk is with that vendor.”
Sprague emphasized that Ohio doesn’t actually receive or hold bitcoin. The company hired by the state to process the bitcoin payments converts them into dollars before they are sent to the Ohio treasury. The company, Bitpay, takes a 1% commission on the transaction as its payment.
Bernie Moreno, a politically active Cleveland businessman who has championed the use of cryptocurrency, said in November that he had paid his business taxes that month in bitcoin. Earlier this month BitcoinExchangeGuide ha reported that New Hampshire had also passed a bill that gives the people living in the state the opportunity to pay taxes using cryptocurrency.
If the bill is eventually accepted and approved, it would then require the state treasurer to ascertain methods of receiving cryptocurrency tax latest by November 2019. After this, the real process of receiving cryptocurrency tax payments would eventually kick off by July 2020.