Ohio bill aims to exempt crypto payments from extra taxes

Ohio lawmakers have introduced House Bill 116, also known as the "Ohio Blockchain Basics Act," which seeks to prevent the state from imposing additional taxes on digital assets used for payments.

Introduced on February 24 by Representative Steve Demetriou, the bill aims to amend existing legislation to ensure that crypto assets are not subjected to extra taxes or fees beyond those applied to traditional fiat transactions.

The bill defines "digital assets" as cryptocurrencies, stablecoins, and non-fungible tokens, clarifying that while standard taxes like state or sales taxes will still apply to crypto transactions, no new levies should be imposed.

The "Ohio Blockchain Basics Act" also ensures that state agencies and political subdivisions cannot prohibit individuals from accepting crypto assets as payment for goods and services.

Ohio residents would retain the right to self-custody their digital assets using hardware or self-hosted wallets and engage in crypto staking.

Activities such as mining, staking, and exchanging crypto assets would not require "money transmission" licensing under existing Ohio laws.

Individuals can engage in crypto mining in residential areas while complying with local zoning regulations, and mining businesses are explicitly allowed in industrial zones, protected from unfair targeting by local zoning changes.

Under the proposed legislation, Ohio state retirement funds would be required to evaluate the potential risks and benefits of investing in a crypto exchange-traded fund and report back to the General Assembly within a year.

Ohio lawmakers have been actively involved in crypto-related legislation, with previous bills introduced to require the state to accept cryptocurrency for tax and fee payments and to establish a strategic Bitcoin (CRYPTO:BTC) reserve for the state.

Senator Sandra O’Brien introduced a bill in February to create an "Ohio Bitcoin Reserve Fund," with a five-year holding period.