Innisfil town Ontario, Canada will soon accept Bitcoin as property tax. The town administrators are experimenting with a pilot program that will allow the residents to clear their property taxes using Bitcoin.
From April 2019, Innisfil residents will start paying their taxes with Bitcoin. The town’s mayor Lynn Dollin said that they have entered into an agreement with Coinberry Pay. The Bitcoin payment processing platform will collect property tax in the form of Bitcoin, convert them to the Canadian dollar and remit it to town coffers.
The pilot project received the backing of the council late on Tuesday. Council members voted overwhelmingly to allow the pilot project run for one year.
The Innovative Innisfil
The town of about 36,000 residents is among the most innovative cities in the world. The mayor said that the pilot project was an indication that the town values innovation.
Innisfil has been on the forefront in the launching of several innovative projects. Cointelegraph reports that in 2017, the town introduced a tax-subsidized ridesharing program in cooperation with Uber. Consequently, the program duped Innisfil Transit, has seen a dramatic drop in traffic snarl-ups.
The mayor indicated that the tax program would be extended to support other popular cryptos. Plans are underway to include Ethereum, Bitcoin Cash, Ripple and Litecoin once the piloting is over.
Increased Adoption of Bitcoin for Taxes
Innisfil is not the first town or city to adopt tax payment using Bitcoin. Ohio was the first state in the US to accept Bitcoin for tax from businesses. A business can pay 23 different taxes in Ohio using Bitcoin via an online portal introduced by the state’s treasury. However, adoption of the program has remained lull as only two firms are using the service.
In February this year, California lawmakers brought forth a bill which will allow Cannabis-based enterprises to pay taxes using stablecoins. The assembly Bill 953 seeks to let the state, city or county tax office to accept many cryptos as a tax payment. The cryptos must be pegged on a physical asset or fiat money. Currently, the bill is at the committee stage, and there are high hopes it will go through.
The latest move by different government agencies and departments to adopt cryptos for taxes follows massive adoption in the business world. Several businesses are now accepting cryptos for goods and services, and government agencies are keen not to be left behind.
Innisfil’s move to adopt cryptos for tax comes just days after reports surfaced that the Canada Revenue Agency (CRA) was investigating crypto investors. The tax collector has sought clarification on various aspects in regards to crypto investments. CRA wants to know how crypto investors got their digital money and if they use them.
Do you think Innisfil will succeed in wooing people to pay their taxes using cryptos? Let us know in the comments section.