It’s little over a month that the tax regulators in the state of Ohio agreed on accepting taxes in bitcoins and, the first prominent company with a national presence to use this facility is crypto friendly online retailer Overstock.com.
OhioCrypto, Bitcoin payments for taxes
Nearly over a month after the state of Ohio announced a first-of-its-kind payment portal called ‘OhioCrypto’, which let companies remit taxes using cryptocurrency. Crypto friendly online retailer Overstock.com announced that it would be paying a part of its state business tax using bitcoin.
According to the interview given to the Fortune Magazine, Ohio State’s Treasurer Josh Mandel mentioned that the Bitcoin tax collection program was introduced with an aim to provide convenience to businesses in the state. This would also help in branding the state as the front-runner in blockchain technology adoption. To encourage businesses to use this facility, the state has decided to waive off the bitcoin services fee for early birds like Overstock.com. Using bitcoin for paying taxes would anyways be judicious to taxpayers as the service fee for bitcoin payments is just 1% compared to 2.5% that is currently charged to one who opts to pay by credit card.
This initiative introduced by Ohio state regulators as of now covers 23 types of business taxes including the one that is charged in tobacco and fuel. For Overstock, the taxes that are eligible to be paid via Bitcoin is Commercial Activity Tax (CAT), which applies to businesses with over $150,000 in receipts.
Mandel further says that the state plans to expand this initiative to other types of taxes and to individual tax filers by the year 2020. The state also has plans to add more cryptocurrency to the portal apart from just Bitcoin.
An Ohio auto dealer was the first company to use this service, but Overstock is the first prominent company to accept this offer and starts paying in cryptos. Ohio State is currently using Bitpay wallets to accept these payments.
Patrick M. Byrne, Overstock’s CEO was also quoted by Fortune Magazine. He said,
“We have long thought that thoughtful governmental adoption of emerging technologies such as cryptocurrencies (when accompanied by non-restrictive legislation over these technologies) is the best way to ensure the U.S. does not lose our place at the forefront of the ever-advancing global economy,”
Overstock has shown its belief in bitcoin and blockchain technology and is not just accepting cryptocurrency but will now be using it to pay taxes as well.
Will other prominent companies follow Overstock.com footsteps and will use bitcoin to pay taxes? Do let us know your views on the same.
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.