Ohio Senator Proposes Bill to Accept Cryptocurrency for Taxes and Fees

In a bold move toward integrating cryptocurrency into state government operations, Ohio State Senator Niraj Antani has introduced a bill that would allow residents to pay state taxes and fees using cryptocurrency. The legislation, introduced on September 30, also opens the door for state institutions of higher education and the state pension fund to invest in digital assets if they choose.

The bill places significant responsibility on the state’s tax commissioner, who would be tasked with selecting which cryptocurrencies are acceptable for use by June 30 each year. According to the proposed law, “governmental entities” would be required to accept cryptocurrency payments for taxes, fees, fines, or other financial obligations, though they may impose additional service fees related to these transactions.

Interestingly, the bill specifically excludes Central Bank Digital Currencies (CBDCs) from being considered cryptocurrency under Ohio law, stating that the definition of cryptocurrency refers only to digital assets that “maintain a stable value relative to a fixed amount of monetary value.”

A Return to Crypto-Friendly Policies?

This legislation marks a potential return to Ohio’s earlier foray into cryptocurrency payments for taxes. In 2018, the state briefly became the first in the U.S. to accept Bitcoin for tax payments under then-Treasurer Josh Mandel. However, that initiative was halted in 2019 due to concerns from the State Board of Deposits, which never fully approved the use of crypto for state obligations.

Senator Antani emphasized that the new bill addresses that failure: “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.”

Implications for State Institutions

In addition to allowing residents to use cryptocurrency for tax payments, the bill extends to state universities and pension funds, granting them permission to invest in crypto markets. If passed, Ohio would join Colorado as one of the few states in the U.S. to officially accept cryptocurrency for tax payments, signaling growing governmental acceptance of digital currencies.

The bill’s broad scope also includes provisions for defining the stability of acceptable cryptocurrencies and requires the state to publish a list of approved digital assets annually.

As Ohio takes another step toward embracing digital finance, the success of this bill could have far-reaching implications for the state’s economy and its relationship with the burgeoning crypto industry.

With Ohio’s position as a pioneer in cryptocurrency acceptance, the passing of this legislation could put the state at the forefront of crypto-friendly policies in the U.S. Should the bill gain approval, Ohio would cement its reputation as a leader in integrating cryptocurrency into government operations, potentially setting a model for other states to follow.

Digital Assets Desk