Wednesday, December 26, 2018

Ohio accepting tax payments in Bitcoin

Why Ohio bitcoin tax gimmick is like paying with Beanie Babies - Susan Tompor, MSN News:

December 24, 2018 - "Car dealer Bernie Moreno took a small step outside of the tax payment comfort zone.... Moreno, 51, converted U.S. dollars into bitcoin in late November and paid off some taxes relating to car leases to the state of Ohio — gaining the Facebook bragging rights that he was the first ever to use bitcoin to pay some type of state taxes in the country.

"'Digital currency and blockchain are really the next tech revolution,' said Moreno, president of The Bernie Moreno Cos auto dealership in Olmstead, Ohio.

"Ohio is the first state in the United States to accept cryptocurrency. The state allows payment of 23 different business taxes via the portal, including the state sales tax, cigarette taxes, the public utilities tax, withholding tax and assorted other taxes.

"'From mom and pop coffee shops to Fortune 100 companies, businesses now have the ability to pay their taxes with,' the Ohio Treasurer's website says.

"For security purposes, a business must have a profile on file with the state Treasurer’s office... There's an initial three-month window where no fees will be charged. After the introductory period, the transaction fee will be 1 percent. The added cost would be lower than charges for using a credit card, the state said....

"Ohio's state treasurer Josh Mandel told CNBC that the Buckeye State is looking to attract blockchain start-ups with its new acceptance of bitcoin for taxes. Blockchain has the potential to revolutionize the financial services industry by making payments faster, more secure, and less expensive on a global scale, according to industry backers....

"In May, General Motors and Ford joined BMW and Renault and other firms to create the Mobility Open Blockchain Initiative to explore how manufacturers could tap into this new technology."

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