Online retail giant Overstock.com Inc. (OSTK) said Thursday that it will pay a part of its business taxes to the government of Ohio using bitcoin.
The company said it plans to pay its commercial activity taxes (CAT) in February using the state’s recently-launched cryptocurrency taxpayment website, OhioCrypto.com.
Ohio is the first U.S. state to offer a cryptocurrency payment system for business taxes, while the blockchain technology pioneer claimed that it will become the first major U.S. company to make use of it.
Ohio had announced last year that it would allow businesses to pay taxes in bitcoin, which would be converted into dollars by a third party.
In a three-step process, businesses log in to the OhioCrypto.com portal, enter tax details, and transmit the payment using a compatible bitcoin wallet.
Bitcoin processor BitPay would then convert the cryptocurrency into a U.S. dollar equivalent, which would be passed to the office of the Ohio Treasurer.
Ohio Treasurer Josh Mandel commended Overstock for becoming the first national brand in America to register to pay taxes via cryptocurrency.
“We are 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,” said Overstock CEO and founder Patrick M. Byrne.
Overstock says that in 2014, they were the first major retailer to accept cryptocurrencies for purchases on its website. In the same year, the company founded Medici Ventures, its wholly-owned blockchain subsidiary focused on applying blockchain technologies to existing industries to eliminate middlemen.
Based in Salt Lake City, Utah, Overstock.com sells a broad range of home appliances through its e-commerce website. The online shopping site claims to have nearly 40 million customers’ visits a month.
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