Ohio Senator Introduces Bill to Accept Crypto for Taxes and Fees

Highlights:

• Ohio Senator introduces a bill to accept crypto payments for state and local taxes, updating the tax system.
• The legislation seeks to revive Ohio’s 2019 initiative to accept cryptocurrency for tax payments.
• The bill enables state universities and pension funds to invest in cryptocurrencies, encouraging wider digital asset integration in Ohio.

On Sept. 30, Ohio State Senator Niraj Antani introduced a bill that mandates the state and its local political subdivisions to accept Bitcoin and other similar currencies as payment of taxes and other dues. The legislation would also permit state universities and the state pension fund to invest in cryptocurrency if they choose to. Under the bill, the state tax commissioner would determine which cryptocurrencies will be accepted each year by June 30.

Antani noted that the bill aims to integrate cryptocurrency into Ohio’s tax system, reflecting the evolving nature of finance and technology. He stated that the legal framework for digital currencies must be formalized to promote progress and support free enterprise within Ohio’s borders. He explained that the legislation allows Ohio residents to use digital assets to fulfill their tax and fee obligations.

The law mentions that government entities could require payers to cover service fees tied to cryptocurrency transactions. It seems that central bank digital currencies (CBDCs) are not included, as the law defines “‘Cryptocurrency’ as not including a national currency.” 

JUST IN: 🇺🇸 Ohio State Senator Niraj Antani introduces bill to require Ohio to accept #Bitcoin for taxes. pic.twitter.com/2DZTVQBmSO

— Bitcoin Magazine (@BitcoinMagazine) September 30, 2024

Ohio Seeks to Expand on Previous Crypto Initiatives

The bill builds on a previous effort from November 2018, when Ohio became the first U.S. state to allow tax payments using cryptocurrencies under then-State Treasurer Josh Mandel. However, they abandoned the plan in November 2019. Ohio’s Attorney General ruled that the State Board of Deposits needed to approve it. Since then, the Board has not reviewed the proposal, effectively halting the acceptance of cryptocurrency for tax payments.

Senator Antani expressed frustration with the slow progress in formalizing the cryptocurrency policy. He highlighted that the board should have acted when the policy need was clear. Since it didn’t, an Ohio senator introduced a bill to accept crypto.

Antani said: 

“This policy should have been acted on by the State Board of Deposits when it was deemed necessary. Since they have failed to act, the legislature will.”

Growing Interest in Cryptocurrency for State Payments

In recent years, several states have considered or proposed legislation to permit cryptocurrency for state-related payments despite the federal government’s cautious stance under the Biden administration.

Recently, Congressman Matt Gaetz introduced a bill to allow cryptocurrency payments for federal taxes as well, signaling a shift in attitudes. While these efforts indicate a rising interest in using cryptocurrency for state payments, adoption has been slow due to significant variations in the legislative process across states.

Florida Republican Congressman Matt Gaetz introduced a bill on Tuesday that would require the U.S. Treasury Secretary to develop a plan to allow federal income taxes to be paid via Bitcoin. Currently, only Colorado allows the use of cryptocurrency to pay taxes.…

— Wu Blockchain (@WuBlockchain) June 26, 2024

New Hampshire was among the first to explore this type of legislation, but the bill did not pass. With Antani’s renewed efforts, Ohio could become the second state to successfully implement such a program, following Colorado, which began accepting cryptocurrency for taxes in 2022 under Governor Jared Polis.

Wyoming and Arizona have made strides toward passing bills to allow tax payments in cryptocurrency, with Wyoming showing more success. Arizona’s lawmakers introduced a bill to recognize Bitcoin as legal tender for tax payments, but constitutional challenges have delayed its advancement.

In contrast, Wyoming, recognized for its crypto-friendly policies, is exploring legislation to permit cryptocurrency payments for state sales and use taxes. Additionally, Louisiana recently announced plans to start accepting cryptocurrency for state services, beginning with the Department of Wildlife and Fisheries as part of its pro-crypto initiative.