Ohio Senator Niraj Antani has introduced a bill that would allow residents to pay state and local taxes using cryptocurrencies, including Bitcoin.
A Push for Innovation in Ohio
The legislation proposed by Senator Antani would allow taxpayers in the state to pay their taxes using cryptocurrencies like Bitcoin. Introduced on September 30, the legislation seeks to expand the use of digital assets for state and local tax obligations, pushing Ohio toward wider acceptance of cryptocurrency in government transactions.
Senator Antani emphasized the importance of innovation and forward-thinking in the state's economy,
"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."
By enabling Ohioans to pay taxes using digital currencies, the bill aims to position the state as a leader in integrating emerging technologies. In addition to allowing tax payments in crypto, the bill proposes giving state universities and public pension funds the ability to invest in cryptocurrencies, providing these institutions with greater financial flexibility.
Addressing Previous Hurdles
This isn't Ohio’s first attempt at embracing cryptocurrency for tax payments. In 2018, it became the first state to allow businesses to pay taxes with Bitcoin under the leadership of then-State Treasurer Josh Mandel. However, the program was short-lived after it was deemed that the State Board of Deposits needed to approve the initiative. The Board’s inaction led to the program’s cancellation.
Antani’s bill attempts to resolve past issues by explicitly mandating the acceptance of cryptocurrency payments for taxes and fees.
He praised Mandel’s early efforts, stating,
"Former State Treasurer Josh Mandel was a leader in cryptocurrency in 2018, and Ohioans have him to thank for being an early adopter of this innovation. The State Board of Deposits should have acted, and since they haven’t, we will."
Privacy Concerns and Legislative Process
While the bill has been met with enthusiasm by some, critics have raised concerns regarding potential privacy issues. They argue that enabling crypto payments could allow the government to link wallet addresses to individual taxpayers, which may pose risks for crypto investors seeking privacy.
The bill is currently awaiting committee assignment and must pass through Ohio's bicameral legislature before reaching the governor’s desk for approval. The timeline for its review remains unclear, and if it is not passed by the end of the legislative session in December, it will likely be shelved.
Broader Trends in Crypto for Taxes
Ohio’s move reflects a growing trend among U.S. states exploring the use of cryptocurrency for government payments. In 2022, Colorado became the first state to successfully implement such a program under Governor Jared Polis, while states like Wyoming and Arizona have introduced similar bills.
Despite these efforts at the state level, federal progress has been slower. Congressman Matt Gaetz recently introduced a bill to permit crypto payments for federal taxes, signaling the potential for wider adoption. However, the federal government’s cautious stance under the Biden administration has kept more sweeping reforms at bay.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
