This acceptance is meaningless.
It depends. If paying your taxes in Bitcoin isn't a taxable event on its own, then paying taxes in Bitcoin after a solid increase suddenly becomes so much more of an interesting option to traders and investors. Overall, this is also part of adoption, so even though it only concerns a smaller city in this case, it's still a good thing in my book. People here became so spoiled that they dislike anything that doesn't fit in their picture perfect narrative.
As long as Bitcoin's price is so volatile people shouldn't be surprised that merchants and local governments use third party payment gateways to have every incoming Bitcoin transaction be converted to fiat.
