Claim: Ohio is “rebranding” itself by becoming the first state in the US to accept Bitcoin for tax payments
So, we all know that the major cities in the U.S. known for tech are bicoastal: Silicon Valley and New York. How has the midwest garnered fame and attention regarding their tech scene. Coming from Chicago, I know the tech scene is big, but not as big as the coasts. With the latest tech it seems easy and almost common sense to rebrand themselves as the “tech capital” by introducing and pushing laws like this. Ohio has allowed, businesses to use crypto as a form of payment for tax purposes. They plan to extend this to individual taxpayers in the future.
Other states that have tried to accept crypto as a form of tax payment have been Arizona, Georgia, and Illinois. The failure for those laws to pass were because of a lack of understanding of both crypto and the currency exchange.
In regards w/ Georgia:
“There was a lack of understanding on what cryptocurrency is, and when I was talking to senators there was that old-school ‘isn’t that what was used to buy drugs?’ [Passing the bill is] going to take educating decision-makers and government regulators on what cryptocurrencies are.”
In regards w/ Arizona:
“The Department shall study whether a taxpayer may pay the taxpayer’s income tax liability by using a payment gateway, such as bitcoin, litecoin or any other cryptocurrency that uses electronic peer-to-peer systems. The Department shall study the conversion of cryptocurrency payments to United States dollars at the prevailing rate after receipt and shall study the process of crediting the taxpayer’s account with the converted dollar amount actually received less any fees or costs incurred by the Department for conversion.”
What I found interesting is how Ohio is taking the dive with businesses first, and then addressing individual taxpayers later. I think once this is implemented, other states will follow suit. This is also a very smart move, because those that are in the tech scene are not attracted to Ohio (i am now)!