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Bitcoin GoldOhio has become the first government agency in the world to accept Bitcoin for tax payments. The state has opened a website, OhioCrypto.com, to accept the cryptocurrency for payment 23 kinds of business taxes, including sales and withholding taxes, with other cryptocurrencies to be considered.

The service is being offered under state treasurer Josh Mandel. The website notes “Treasurer Mandel believes in leveraging cutting-edge technology to provide Ohioans more options and ease while interfacing with state government. The Treasurer’s office is also working to help make Ohio a national leader in blockchain technology.”

Currently, payments can be made but refunds are not allowed. Also, BitPay will accept payments only for the exact amount—under- or over-payments are not accepted. The state says the Cryptocurrency Tax Payment Portal is extremely secure because “Cryptocurrencies cannot be transferred to third parties without user initiation, thereby practically eliminating fraud.”

Businesses must be registered in order to take advantage of online services. Because of the changes in the value of Bitcoin, BitPay sets an exchange rate which is valued for 15 minutes once the taxpayer begins to make payments. BitPay assumes risk for market fluctuations during that window, but if a payment is not submitted in that time then the taxpayer must restart the transaction with an updated exchange rate.

Other taxes which can be paid are Cigarette/Other Tobacco Products, Commercial Activity, Consumer’s Use, Direct Pay Permit, Financial Institution, Interest on Lawyers Trust Accounts, International Fuel Tax Agreement, Kilowatt Hour,  Motor Vehicle Fuel, Municipal Net Profits, Natural Gas Distribution, Non-Resident Motor Vehicle Sales Tax, Public Utilities Tax, Seller’s Use Tax, Kilowatt Hour and Pass-Thru Entity Tax.Petroleum Activity, Premium Insurance Tax, Severance Tax and Streamlined Sales Tax.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
Last modified on Wednesday, 28 November 2018
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