We knew it was going to happen at some point, but now the state of Ohio has become the first state in the nation to officially offer businesses the option of paying their taxes using Bitcoin.  Starting Monday, businesses in Ohio can make their sales and withholding tax payments through OhioCrypto.com, a state-controlled site that uses a third-party processor to convert digital currency into dollars and then deposits them into the state treasury. By using the third-party, outgoing state Treasurer Josh Mandel believes the risk is limited in that the state will never actually be in possession of the digital currency. Those paying with Bitcoin will incur a network fee, a mining fee (charge specific to Bitcoin users) and a 1% processing fee. Other states (Arizona, Georgia & Illinois) have considered authorizing Bitcoin payments through legislation, but none have passed up to this point. Mandel implemented the Bitcoin program under his authority as treasurer to determine how state taxes are collected.