Ohio Attempts Cryptocurrency Tax Payments, Seeking Leading Position in Digital Economy

Ohio has proposed a bill that would allow state residents and businesses to pay taxes and fees using Bitcoin and other digital assets.

Ohio is renewing its efforts to become a frontrunner in cryptocurrency adoption with a newly proposed bill that would allow state residents and businesses to pay taxes and fees using Bitcoin and other digital assets. Introduced by State Senator Niraj Antani, the legislation aims to position Ohio as a pioneer in integrating cryptocurrency into the state’s financial infrastructure.

This is not Ohio’s first attempt to integrate cryptocurrencies into its financial system. In 2018, under then-State Treasurer Josh Mandel, Ohio briefly held the distinction of being the first state to accept Bitcoin for business tax payments. This initiative, however, was short-lived due to a ruling by the Ohio Attorney General that required approval from the State Board of Deposits. The Board’s inaction ultimately led to the program’s termination. Senator Antani’s current bill seeks to bypass this previous roadblock by explicitly mandating the acceptance of crypto payments for a broader range of state taxes and fees.

Cryptocurrency Is The Future

“Cryptocurrency is not just the future, but it’s the present of our 21st-century economy,” said Antani, noting how the bill aims to normalize crypto usage in Ohio’s financial arena. “We must encourage innovation and free enterprise in Ohio.”

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The proposed legislation extends beyond tax payments to encompass other aspects of state finance. It would also permit state universities and public pension funds to invest in cryptocurrencies, granting these institutions greater flexibility in managing their financial portfolios. This move aligns with a growing national trend as states like Colorado, Florida, and Utah explore or implement similar measures to embrace digital assets within their financial systems. Colorado, for example, achieved a milestone in 2022 by becoming the first state to officially accept Bitcoin for tax payments, utilizing PayPal as a payment processing platform.

“By allowing Ohioans to pay their taxes and fees with cryptocurrency, we will be on the cutting edge,” Adani stated, reflecting on the importance of progress in crypto adoption.

The bill acknowledges the previous attempt led by former State Treasurer Josh Mandel, recognizing his role as an early advocate for cryptocurrency adoption in Ohio. “Former State Treasurer Josh Mandel was a leader on cryptocurrency in 2018, and Ohioans have him to thank for being an early adopter of this innovation,” Antani said, calling out the missed opportunity to act on the growing crypto trend.

The bill’s introduction signifies Ohio’s renewed commitment to exploring the potential of cryptocurrencies and potentially joining a select group of states that have embraced digital assets for government transactions. Florida Governor Ron DeSantis expressed support for businesses paying state taxes in cryptocurrency in 2022. Utah enacted H.B. 456, directing its government to accept cryptocurrency for tax payments starting in 2023. Wyoming, known for its crypto-friendly policies, is considering legislation to enable crypto payments for state sales and use taxes. Louisiana recently announced it would begin accepting crypto for state services, starting with the Department of Wildlife and Fisheries.

The bill in Ohio must now go through the legislative process. Its reintroduction highlights the state’s determination to explore the potential benefits of cryptocurrencies and its desire to be a leader in the adoption of digital assets for government services.