Ohio State Senator Niraj Antani has recently introduced groundbreaking legislation that aims to legalize Bitcoin (BTC) and other cryptocurrencies for tax payments in the state of Ohio and its local political subdivisions. The bill, introduced on September 30, allows Ohioans to use digital assets, including Bitcoin, to satisfy their state and local tax obligations, marking a significant step towards broader adoption of cryptocurrencies in government transactions.
Senator Antani expressed his belief in the importance of embracing cryptocurrency in the modern economy, stating, “Cryptocurrency is not just the future, but it’s the present of our 21st-century economy. We must encourage innovation and free enterprise in Ohio.” This legislation seeks to position Ohio as a leader in technological advancement and economic development by enabling the use of cryptocurrencies for tax payments.
Ohio made headlines in November 2018 when it became the first state to accept crypto for tax payments under then-State Treasurer Josh Mandel. However, a ruling by the Ohio Attorney General in November 2019 required formal approval from the State Board of Deposits, causing a delay in the program’s implementation. Senator Antani’s bill aims to bypass this hurdle by pushing the legislature to act in place of the board.
In addition to allowing tax payments in crypto, the bill also permits state universities and public pension funds to invest in cryptocurrencies, providing these institutions with more flexibility in their financial strategies. This move could potentially open up new avenues for investment and revenue generation for these entities.
Ohio’s initiative to legalize crypto payments for taxes comes amidst a broader trend of states exploring similar legislation. Congressman Matt Gaetz recently introduced a bill to allow crypto payments for federal taxes, signaling a growing interest in utilizing cryptocurrencies for government transactions. States like Colorado, Wyoming, and Arizona have also made strides in this direction, with varying degrees of success.
Colorado began accepting crypto for taxes in 2022, following Ohio’s initial foray into the space in 2018. Wyoming, known for its crypto-friendly policies, is considering legislation to enable crypto payments for state sales and use taxes, while Arizona has faced constitutional challenges in its efforts to allow Bitcoin as legal tender for tax payments. Louisiana has also announced plans to accept crypto for state services, further underscoring the growing acceptance of cryptocurrencies in government transactions.
With Senator Antani’s bold move to legalize crypto payments for taxes in Ohio, the state is poised to become a trailblazer in this space once again. By embracing the use of cryptocurrencies for tax payments, Ohio is not only fostering innovation and economic growth but also paving the way for other states to follow suit in the realm of digital finance.