There are several options for sending bitcoin, What if you are afraid of your main wallet is afraid in the know of many people especially the government.

Can make bitcoin payments through direct exchanges.
Can use non-custodial wallets that are not funded from your main wallet.

As long as the source of the bitcoin is not from a platform flagged by some exchange or government, it is likely to remain safe in my opinion.

It's simple, they can pay using fiat. Payment using Bitcoin is only optional.

If you value your privacy about BTC ownership that's very good, but what we read in the article about this, mentioning the government is just keeping up with the times what the community needs, maybe the government knows now that the use of bitcoin has been a lot in they adopt this payment.

Forget the doubting. 

Personally if I get an opportunity where transactions can be made through bitcoin, then I will definitely use bitcoin as a priority. And if any state in the USA makes such a decision, then I will definitely consider it as a positive impact for bitcoin. And in the case where you mentioned the risk of others knowing your wallet information during tax payment, in particular, you can use a separate wallet to pay taxes with bitcoin. In that case, its security risk will be reduced.

But the main problem is that no country can suddenly launch a system for paying taxes through bitcoin. Before that, the use of bitcoin must be approved in that country or in this particular section. I think that the USA is conducting experimental activities by launching a bitcoin based system in some states, so that if a bitcoin based system is launched on a large scale in the future, what kind of positive impact can it create.

I will make payments with Bitcoin if such a thing is available in my country. But I will not use the main wallet that I use to store Bitcoin. You would not casually make transactions directly related to the main wallet if you have a significant amount of Bitcoin. 
You surely have some other wallets containing fewer Bitcoins that you can use for transactions such as paying taxes or other needs.

 Why can't we use cash alone to do that? I understand that Bitcoin is evolving and people, institutions and businesses are trying to fix it into their daily activities but this sounds suspicious especially as someone like Dariel Fernandez who have no prior interests or affiliations with Bitcoin suddenly decides to use it as a payment option for property tax?
 

Privacy concerns about this step to bitcoin adoption is very important, because bitcoin transactions are recorded on a public blockchain and once a payment address is linked to your identity they can easily trace your transactions. So that is why I will not use my main wallet for payments like this.

For me, I will prefer to use a separate account with only the amount of bitcoin needed for the payment than exposing my long term savings. Bitcoin adoption is good but people should be aware of the privacy risks that come with using it.

We don't have such an opportunity in our country, because Bitcoin is illegal in my country. But hopefully in the future we will also get the opportunity to pay money using BTC.

Anyway, regarding your question, if it were possible to pay property tax using BTC, then I would pay the tax using BTC. Because if I get the opportunity, it can be used. And I don't have a huge amount of BTC, so I won't worry too much about it.

If everyone would think like that then what will happen to Bitcoin adoption?

Are you saying that for us not to be tracked we should just buy and HODL? I think it should not be like that as adoption means there are Bitcoin transactions and for us being able to pay taxes with Bitcoin is already considered adoption. We should even be thankful that it's the government that took the initiative to do that, it means they recognize it.

Obviously not, and it is highly discouraged to pay taxes using bitcoin. This is too waste of assets, it is better to use fiat only because then bitcoin will still provide benefits for you.  Even if they give a discount for every payment using bitcoin, I think the Old holders will still not do it.