Overstock Becomes the First Major US Company to Pay Business Tax in Bitcoin
The cryptocurrency-friendly company Overstock.com announced on Thursday that company will be paying part of its business taxes to the state of Ohio using bitcoin. Overstock will use the state’s Ohiocrypto.com website to pay for the corporation’s commercial activities tax this year.
Overstock Pays the Company’s Business Tax in Bitcoin
Last November, the U.S. state of Ohio launched a payment portal that allows businesses to pay taxes with bitcoin core (BTC) and bitcoin cash (BCH) via Bitpay’s payment services. On Jan. 3, Overstock announced it was the first major U.S. company to pay a portion of its Ohio state business taxes with cryptocurrencies. Overstock CEO and founder Patrick Byrne detailed during the announcement that forward-thinking states like Ohio will help ensure the U.S. doesn’t get left behind during the digital revolution.
“We have long thought that thoughtful governmental adoption of emerging technologies such as cryptocurrencies is the best way to ensure the U.S. does not lose our place at the forefront of the ever-advancing global economy,” said Byrne. The Overstock CEO also emphasized the importance of non-restrictive legislation over these types of technologies.
Byrne continued by stating:
“[Overstock] is proud to partner with forward-thinking governments and officials like Ohio and Treasurer Mandel to help usher in an era of trust through technology for our nation’s essential financial systems.
Digital Asset Payments Add ‘Convenience’
There are 23 types of taxes that can be paid using BTC and BCH in the state of Ohio and Overstock will be using the ability to pay its commercial activities tax (CAT). Ohio Treasurer Josh Mandel explained that taxpayers who use credit cards have to pay a 2.5 percent charge, whereas cryptocurrency payments only incur 1 percent. However, because Overstock paid its CAT early using a digital asset, it will not incur a fee as filings before the deadline are fee exempt. Mandel has also explained that Ohio may expand the program in 2020 by adding other types of taxes and possibly more cryptocurrencies. The state’s Treasurer explained the government’s office is thrilled to see Overstock embrace Ohio’s newly launched crypto payment services.
“We applaud Overstock for becoming the first national brand in America to register to pay taxes via cryptocurrency — Their embrace of blockchain technology was ahead of its time and we’re proud to have them join Ohiocrypto.com,” said Mandel.
Overstock’s founder Byrne has been a proponent of cryptocurrencies for some time and his company was one of the first major retailers to begin accepting bitcoin. The company is also working on its own blockchain project and announced that it was accepting a wider assortment of digital currencies in 2017. In a recent interview, Josh Mandel stated he believes the new tax collection program will add more “convenience” for businesses like Overstock and looks forward to seeing other firms pay taxes with this form of money.
What do you think about Overstock paying part of its Ohio business taxes in Bitcoin? Let us know in the comments section below.
Images via Shutterstock, Ohiocrypto.com, Politico, and Pixabay.
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