Businesses, Not Individuals
The Wall Street Journal details that the decision to accept taxes in Bitcoin is applicable to businesses at the moment. From this week onward, Ohio registered businesses are eligible to pay all of their taxes in Bitcoin through crypto payment service, BitPay.
State Treasurer Josh Mandel was reported saying he intends to “plant a flag” for Ohio when it comes to national level adoption of cryptocurrencies. He firmly believes that bitcoin is here to stay and said, “I do see [Bitcoin] as a legitimate form of currency.” He also said that even after the end of his term, he is “confident that this cryptocurrency initiative will continue.”
If the initiative is successful, there will be an option for individuals to file their taxes in crypto too. However, it has yet to be seen if the business level taxing is feasible or not.
In a surprise move, Mandel clarified that he and his office can accept the cryptocurrency “without approval from the legislature or governor”. This is perhaps the reason that Bitcoin acceptance is so easily approved in Ohio.
When it comes to other states, any and all bills that have been motioned to accept cryptos for taxes have either been delayed or simply not passed by lawmakers. Arizona House of Representatives have already passed a bill in May, that should allow citizens and individuals to pay taxes in cryptos, but the bill is waterlogged due to many different amendments suggested.
Similarly, Georgia state also tried to pass a tax payment in crypto bill in the start of February. The bill is stuck in limbo, with an apparent statusof “25% progression, died in committee”
These moves show a definite trend of State governments considering, if not willing, to accept cryptocurrencies.