Ohio proposes legislation to accept digital assets for state financial obligation payments: the details.
On September 30, a state senator from Ohio introduced a bill that, if passed, would allow the acceptance of Bitcoin and other cryptocurrencies for the payment of state taxes and administrative fees. The bill also includes provisions to enable state higher education institutions and the state pension fund to invest in digital assets if deemed appropriate.
Details of the proposal
The bill was introduced by state senator Niraj Antani. The proposal stipulates that the state tax commissioner will decide annually which cryptocurrencies will be accepted. This decision must be made by June 30 of each year. The legislation would allow any government entity in Ohio to accept cryptocurrencies for the payment of taxes, duties, costs, penalties, or other financial obligations owed. The government entity could charge the payer any service fees related to the cryptocurrency transaction.
According to the text of the proposal, the term “cryptocurrency” is limited to those that offer “a reasonable expectation of maintaining a stable value relative to a fixed amount of monetary value.”
Regulatory context
In 2018, Ohio had already attempted to introduce the possibility of paying state taxes with cryptocurrencies. However, in 2019, the state attorney general emphasized the need for the State Board of Deposits to officially approve the use of cryptocurrencies, which never happened. This obstacle prevented the continuation of the initiative. The new legislative proposal represents an attempt to revive the possibility of payment with digital assets.
As of now, Colorado is the only state in the United States that allows tax payments in cryptocurrencies.
