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Ohio bill proposes accepting cryptocurrency for tax payments

Ohio bill proposes accepting cryptocurrency for tax payments

GrafaGrafa2024/10/01 02:00
By:Liezl Gambe

An Ohio state senator has proposed legislation that would enable cryptocurrency payments for state taxes and fees.

The bill, introduced by Senator Niraj Antani on September 30, aims to push the state toward wider adoption of cryptocurrencies for official financial transactions.

The legislation outlines that the state’s tax commissioner will decide which cryptocurrencies will be accepted each year, with the decision to be finalised by June 30.

According to the bill, “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.”

Additionally, it allows government entities to charge service fees related to cryptocurrency transactions.

The bill also specifies that the cryptocurrencies chosen must maintain stable values relative to a fixed monetary amount.

However, central bank digital currencies (CBDCs) are excluded from this proposal.

The definition within the bill states that cryptocurrency does not include any national currency, effectively ensuring that only decentralised digital assets may be used under this legislation.

This is not Ohio’s first attempt to integrate cryptocurrency into its tax payment system.

The state briefly accepted crypto payments in 2018, but this was discontinued in 2019 after the State Board of Deposits failed to approve the move.

Antani emphasised that the legislature is stepping in because the State Board failed to act, stating, "This policy should have been acted on by the State Board of Deposits when it was deemed necessary."

If passed, this bill would also allow state institutions, including higher education and the state pension fund, to invest in cryptocurrency, further embedding digital currencies into Ohio’s financial landscape.

At present, Colorado is the only U.S. state that accepts cryptocurrency for tax payments.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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