Ohio Lawmakers Propose Bill to Exempt State Taxes on Digital Asset Payments

Highlights:

• Ohio’s House Bill 116 prevents extra taxes on digital assets used for payments.
• The bill grants residents rights to store and stake digital assets securely.
• Ohio pushes for a strategic Bitcoin reserve, strengthening crypto adoption and growth.

On February 24, Lawmakers in the US state of Ohio introduced House Bill 116, which prevents state and local governments from imposing additional fees, taxes, or charges on digital assets when used as a payment method. The bill seeks to treat them the same as traditional fiat transactions. 

The “Ohio Blockchain Basics Act” was introduced by Representative Steve Demetriou and co-sponsored by Tex Fischer, Brian Lorenz, Ty D. Mathews, Riordan McClain, and Josh Williams. Under the proposed legislation, “digital assets” include cryptocurrencies, non-fungible tokens (NFTs), and stablecoins. The bill also ensures that no state agency or political subdivision can ban the use of crypto for payments. 

Ohio’s House Bill 116: Crypto Rights and Regulations

Ohio’s House Bill 116 grants residents the right to store their digital assets in hardware or self-hosted wallets and engage in crypto staking. It also exempts activities such as mining, staking, and cryptocurrency exchanges from needing a “money transmission” license.

Moreover, individuals can mine crypto in residential areas if they comply with the zoning rules. Meanwhile, local government authorities allow mining businesses to operate in industrial zones and protect them from unfair zoning changes.

JUST IN: 🇺🇸 Ohio Representatives introduce bill that would remove state taxes on Bitcoin payments. pic.twitter.com/YGcARTxsIA

— Bitcoin Magazine (@BitcoinMagazine) February 24, 2025

This forward looking initiative shows that Ohio is ready to adopt the digital economy and integrate blockchain technology into its financial system. The bill seeks to incorporate digital assets such as Bitcoin and Ethereum into the financial system of Ohio. It will increase the flexibility and bring updates to its payment rail.

This move could attract crypto businesses and make Ohio the leader in digital asset adoption. It matches the global move to blockchain and has the potential to be a precedent for other states to follow as well.

Ohio’s Push for a Strategic Bitcoin Reserve and Crypto Integration

Ohio representatives have introduced several crypto-related bills. In September, Senator Niraj Antani proposed accepting crypto for state taxes. In December, Ohio House Republican leader Derek Merrin introduced HB 703 to create a strategic Bitcoin reserve for the state. The reserve plans to hold Bitcoin as a valuable asset for future security. It aims for growth, similar to gold holdings by countries and institutions.

In February, Ohio Senator Sandra O’Brien introduced a bill to create an “Ohio Bitcoin Reserve Fund” with a five-year holding period. This allows the state to invest in Bitcoin, holding it for at least five years before selling or using it. The goal is to let the investment appreciate in value over time, capitalizing on Bitcoin’s long-term growth potential.

NEW: 🇺🇸 Ohio State Senator Sandra O'Brien introduced a bill to create a Bitcoin Reserve and require state entities to accept bitcoin as payment. pic.twitter.com/0vwQ5MNT3t

— Bitcoin Magazine (@BitcoinMagazine) February 4, 2025

Both bills highlight Ohio’s growing interest in Bitcoin as a store of value, advancing its efforts to integrate cryptocurrency into its financial strategy. These moves could boost Ohio’s finances and position it as a leader in crypto adoption.