Internet retail giant Overstock announces it will pay its Commercial Activity Tax in Ohio with Bitcoin as the state allows crypto payments.
One of the hurdles that cryptocurrency faces to becoming fully mainstream is being used for everyday things. However, more and more businesses are opening their cash registers to virtual currencies, and one aspect of everyday use is taxes. Ohio is one state that allows businesses to pay certain taxes with Bitcoin. Internet retail giant Overstock has announced it is taking advantage of this policy and will pay its taxes in Ohio with Bitcoin.
Ohio Is Crypto-Friendly
The state of Ohio is at the forefront of pushing cryptocurrency use within the United States. The state unveiled a new portal, OhioCrypto, last fall that allows businesses to pay certain taxes with Bitcoin.
Ohio Treasurer Josh Mandel says that the state decided to start its Bitcoin tax collection program to help the state become a leader in blockchain technology and to provide additional convenience to businesses.
As of now, only 23 types of business taxes are payable in Bitcoin. Mandel says that this list should expand in 2020, not to mention adding additional cryptocurrencies that can be used to pay said taxes.
Paying taxes in Bitcoin will be cheaper for businesses as opposed to credit cards. The state charges a 2.5 percent fee for cards but will only charge 1 percent for Bitcoin. To convert the crypto into fiat, the state is using BitPay.
Overstock is paying the Commercial Activity Tax (CAT) with Bitcoin. It won’t pay the 1 percent surcharge as the company is filing early.
The retail giant is not the first business in the state to pay taxes with Bitcoin. That distinction belongs to an auto dealership, but Mandel notes that Overstock is the first company with a national presence to do so.
Overstock CEO and founder Patrick M. Byrne is a proponent of cryptocurrency. The company has allowed payment in bitcoins for quite some time. The roster of virtual currency payment options was expanded in 2017 to include dozens of other cryptocurrencies.
Of this ability to pay taxes with crypto, Byrne says:
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.
Do you think other states will follow Ohio’s lead in allowing tax payments in crypto? Let us know in the comments below.
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