Legislators in Ohio have proposed a measure meant to stop the state from taxing bitcoin transactions extra. Passage of this law would enhance Ohio’s reputation as a crypto-friendly state, potentially fostering more use of digital assets.
Representative Steve Demetriou first proposed the measure, House Bill 116; co-sponsors are Tex Fischer, Brian Lorenz, Ty D. Mathews, Riordan McClain, and Josh Williams. It expressly forbids the state from imposing taxes, fees, or other levies on digital assets paid for goods and services. Digital assets, according to the law, are stablecoins, cryptocurrencies, and non-fungible tokens (NFTs).
Although regular state and sales taxes would still apply to crypto transactions, the measure guarantees that no extra taxes will be levied outside of the currently relevant rates for regular fiat payments. It also forbids local governments and state authorities from forbidding companies or people from using cryptocurrencies as a legitimate payment method.
Beyond taxes, House Bill 116 upholds Ohio citizens’ freedom to own and oversee their digital assets via self-hosted or hardware wallets. It also makes clear under current Ohio legislation that participating in crypto-related activities, including mining, staking, and trading digital assets, will not call for a “money transmission” license.
The legislation permits domestic crypto mining provided it conforms to municipal planning regulations. Moreover, it guarantees that abrupt changes in zoning laws cannot unfairly target mining companies running in industrial zones.
Apart from these safeguards, the measure requires Ohio’s state pension money to examine the risks and advantages of investing in ETFs for cryptocurrencies. These entities have to report their results to the General Assembly within a year, thereby maybe opening the path for more general institutional acceptance of digital assets.
Ohio has been aggressively investigating rules on cryptocurrencies lately. Earlier ideas have called for creating a state-backed Bitcoin reserve and letting tax payments in Bitcoin. This most recent law emphasizes even more Ohio’s dedication to creating a legislative environment favorable for cryptocurrencies.
