Ohio is taking a significant step towards accepting cryptocurrencies in public services. In late September 2024, Senator Niraj Antani of Ohio introduced a bill proposing the acceptance of cryptocurrency payments for state taxes.
If the bill is approved, Ohioans will be able to use digital assets like Bitcoin to pay their taxes and other fees. This marks Ohio’s second attempt to incorporate cryptocurrencies into the public payment system, following a failed effort in 2018.
Ohio Senator introduces legislation to enable Bitcoin and crypto payments for state taxes.
What is included in the bill?
Here are some key points of the new law:
Bitcoin Payments: The bill allows Ohioans to use Bitcoin to settle state levies, taxes, and fees. The state tax commissioner will determine which cryptocurrencies are acceptable by June 30 of each year.
Service Charges: Additional fees related to Bitcoin transactions may be imposed by the state under the terms of the legislation.
Restrictions on Cryptocurrency Types: Interestingly, the bill limits the list of qualifying cryptocurrencies, focusing on coins with a stable value and excluding national currencies like CBDCs.
The bill is not limited to tax payments; it also permits public entities, including universities and the state pension fund, to invest in Bitcoin if they choose to do so.
A Look Back at Ohio’s 2018
Ohio’s initial attempt to accept cryptocurrencies for tax payments was made in 2018. However, the State Board of Deposits, responsible for authorizing such financial transactions, did not take the necessary steps to support it. Senator Antani has stated that the legislation would now prevent a similar issue, despite causing delays in the process.
Challenges and Responses
Not everyone is in favor of the law, even though it is seen as a positive step towards embracing digital currency. Some experts have raised concerns about privacy if taxpayer identities are linked to cryptocurrency wallets.
Cryptocurrency investors value their privacy, and there are worries that this move could lead to increased government access to their financial information.
If the law is approved, Ohio would join Colorado as one of the few states in the US to accept Bitcoin as payment for taxes. Since 2022, Colorado residents have been able to pay taxes with cryptocurrency, but traditional currency is still used for refunds. While states like Florida have discussed similar measures, none have acted as quickly.
Ohio’s Role in the Larger Context
If the bill is passed, Ohio will join Colorado as one of the few US states to allow tax payments with cryptocurrencies.
Colorado residents have been able to use cryptocurrency to pay taxes since 2022, but refunds are still given in traditional currency. Although other states, such as Florida, have considered similar actions, none have moved as swiftly.
