An Ohio state senator has proposed a bill that would mandate the state to accept cryptocurrency as a form of payment for state taxes and fees. The legislation, introduced by Senator Niraj Antani on September 30, also grants state institutions of higher education and the state pension fund the option to invest in cryptocurrency if they choose to do so.
The proposed bill outlines several important elements regarding the acceptance of cryptocurrency for tax payments:
- Decision Authority: The state tax commissioner will have the authority to determine which cryptocurrencies can be accepted for payment each year, with a deadline set for June 30.
- Payment Acceptance: The bill specifies that:“A governmental entity shall accept cryptocurrency, as approved by the tax commissioner, for the payment of any tax, fee, cost, charge, assessment, fine, or other payment of expense owed to the governmental entity.”
- Service Fees: It also states that the governmental entity may require the payer to cover any service fees associated with cryptocurrency transactions.
Exclusion of Central Bank Digital Currency (CBDC)
Interestingly, the bill appears to explicitly exclude central bank digital currencies (CBDCs) from its definition of cryptocurrency. The legislation notes that:
“‘Cryptocurrency’ does not include a national currency.”
This distinction is crucial as it clarifies that only certain types of digital assets will be accepted for tax payments. Additionally, the bill defines cryptocurrency as:
“‘Cryptocurrency’ means a digital representation of value […] for which there is a reasonable expectation that it will maintain a stable value relative to a fixed amount of monetary value.”
This definition may limit the types of cryptocurrencies that can be accepted for tax payments, focusing on those with a stable value.
Currently, another bill is under consideration in the Ohio House that seeks to exclude CBDCs from being classified as money under the Ohio Uniform Commercial Code. Additionally, there is a bill aimed at protecting the cryptocurrency mining industry, reflecting the state’s ongoing interest in fostering a supportive environment for digital assets.
Senator Antani highlighted Ohio’s pioneering role in accepting cryptocurrency for tax payments, stating that the state was the first to implement such a policy in 2018. However, following that initiative, the state attorney general advised that the State Board of Deposits needed to approve the use of cryptocurrency for tax payments. Unfortunately, the board never acted on this recommendation.
Antani emphasized the need for legislative action:
“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.”
Current Landscape of Cryptocurrency Tax Payments
At present, Colorado is the only state that accepts tax payments in cryptocurrency. This sets the stage for Ohio to potentially follow suit, depending on the outcome of the proposed legislation.
If passed, this bill could have several implications for both the state and its residents:
- Enhanced Accessibility: Allowing cryptocurrency payments could make it easier for tech-savvy individuals to settle their tax obligations, aligning with the growing trend toward digital currencies.
- Investment Opportunities: By permitting state institutions to invest in cryptocurrency, Ohio could foster economic growth and attract innovative companies to the state.
- Regulatory Clarity: The bill aims to establish a clearer regulatory framework for the use of cryptocurrencies in Ohio, which could lead to increased confidence among investors and users.
Senator Niraj Antani‘s proposed legislation marks a significant step toward modernizing Ohio’s approach to cryptocurrency and financial technology. As the landscape of digital assets continues to evolve, this bill could position Ohio as a forward-thinking state in the realm of cryptocurrency acceptance and regulation.
| Aspect | Details |
|---|---|
| Proposed by | Senator Niraj Antani |
| Date Introduced | September 30, 2024 |
| Key Features | Accept cryptocurrency for state taxes and fees |
| Decision Authority | State tax commissioner |
| Exclusion of CBDCs | “Cryptocurrency” does not include a national currency |
| Current Cryptocurrency Policy | Only Colorado accepts tax payments in cryptocurrency |
The proposed legislation represents an important opportunity for Ohio to embrace the digital currency revolution and provide more payment options for its residents.
Featured image credit: qalebstudio via Freepik
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