Ohio Introduces Bill to Accept Cryptocurrency for Tax Payments

Ohio's Second Attempt to Integrate Crypto: Accepting Crypto for Tax

Ohio is making a significant move toward integrating cryptocurrency into its public payment system. On September 30, 2024, Ohio State Senator Niraj Antani introduced a bill to allow the state to accept cryptocurrency for tax payments and fees. This bill, if passed, will enable Ohioans to use digital assets like Bitcoin to pay state taxes and other fees. The initiative follows a failed attempt in 2018 when the State Board of Deposits did not approve the use of crypto for tax payments despite its introduction.

Key Provisions of the New Bill

The proposed legislation outlines several key provisions to facilitate cryptocurrency payments:

• Tax Payments: The state tax commissioner will determine the cryptocurrencies acceptable for payment by June 30 each year. This opens the door for Ohioans to use cryptocurrencies for various state payments, including taxes, fees, and fines.

• Service Fees: The bill allows the state to impose additional service fees associated with cryptocurrency transactions.

• Cryptocurrency Restrictions: The bill excludes central bank digital currencies (CBDCs) and limits acceptable cryptocurrencies to those with stable value relative to a fixed monetary amount.

The bill extends beyond tax payments, permitting state institutions, including higher education and the state pension fund, to invest in cryptocurrencies if they choose to do so. This marks a significant shift in how Ohio might engage with digital assets, aiming to boost its adoption within public financial operations.

Ohio’s Crypto Journey and Challenges

In 2018, Ohio first tried to accept cryptocurrencies for tax payments, but the initiative stalled as the State Board of Deposits did not support it. Senator Niraj Antani's new bill aims to prevent such delays by requiring legislative action. 

Privacy concerns have been raised about taxpayer identities being linked to crypto wallets, potentially increasing government access to financial data. If passed, Ohio will join Colorado, which has accepted crypto for tax payments since 2022. Ohio's renewed effort reflects a broader trend in adopting digital currencies in public services, despite the associated challenges.

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