Global: Ohio to Consider Accepting Cryptocurrency for Tax Payments and Fees

Ohio is once again exploring the use of cryptocurrency for state-level transactions. A new bill introduced by Ohio State Senator Niraj Antani seeks to mandate the acceptance of cryptocurrency for payment of taxes and state fees. The proposed legislation would also permit state institutions of higher education and the state pension fund to invest in cryptocurrencies, should they choose to do so.

According to a press release issued on Sept. 30, the bill would allow the Ohio state tax commissioner to determine which cryptocurrencies will be accepted for any given year. The decision must be made by June 30 each year.

Under the proposed law, the bill states:
“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, the bill allows government entities to pass along any service fees associated with cryptocurrency transactions to the payer.

Notably, the bill excludes central bank digital currencies (CBDCs) from being classified as cryptocurrency. The legislation defines cryptocurrency as a “digital representation of value” with the expectation that it maintains a stable value relative to a fixed monetary amount. This definition may guide the tax commissioner’s choices regarding which cryptocurrencies can be accepted.

A Return to Crypto-Friendly Policies

Antani’s bill marks a resurgence of Ohio’s interest in cryptocurrency. In 2018, Ohio became the first state to accept cryptocurrency for tax payments, but the program was short-lived. The following year, the state attorney general ruled that the State Board of Deposits needed to approve the use of cryptocurrency, a step that was never taken. In response to this inaction, Antani emphasized that the legislature will now take charge of the matter:
“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.”

Ohio is now seeking to join Colorado as one of the few states accepting cryptocurrency for tax payments, further signaling the state’s intent to embrace digital assets in public finance.

The bill represents an important step toward expanding the use of cryptocurrencies in government transactions and fostering a more modern, crypto-inclusive economy for Ohio.