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Economy

Ohio Allows Businesses To Pay Taxes With Bitcoin

photo of bitcoin symbol
EivindPedersen
/
PIXABAY
Businesses using Bitcoin to pay Ohio taxes will be charged a one percent fee.

Ohio is now the first in the country to allow payments in the digital currency bitcoin from businesses paying 23 kinds of taxes – from commercial activity taxes to gas and cigarette taxes to sales taxes to employee withholding taxes. 

The state wouldn’t actually take in and hold bitcoin – businesses would pay through the third-party processor Bitpay. State treasurer Josh Mandel says Bitpay, headquartered in Atlanta, is one of few companies that will quickly convert bitcoin into dollars.

“But hopefully, there will eventually be a company in Ohio or maybe multiple companies in Ohio that do payment processing for cryptocurrency.”

And Mandel says the fee will be 1 percent, which is a huge sum for large payments, but it’s less than the 2.5 percent charged for businesses paying via credit card. Mandel says the goal is to establish Ohio as a leader in blockchain technology, and to eventually accept other cryptocurrencies from businesses and individual taxpayers. It’s uncertain how many businesses might sign up.