Ohio has become the first government agency in the world to accept Bitcoin for tax payments. The state has opened a website,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.
