Ohio Senator Niraj Antani has introduced legislation aimed at legalizing Bitcoin (BTC) and other crypto payments for taxes and fees in the state of Ohio and its local political subdivisions.
The bill – introduced on September 30 – allows Ohioans to use digital assets, including Bitcoin, to meet their state and local tax obligations, moving the state toward broader adoption of crypto in government transactions.
According to Antani:
“Cryptocurrency is not just the future, but the present of our 21st century economy. We must encourage innovation and free enterprise in Ohio.”
In November 2018, Ohio became the first state to accept crypto for tax payments under then-State Treasurer Josh Mandel. However, in November 2019, a ruling from the Ohio Attorney General required the State Board of Deposits to formally adopt the policy, ending the program.
Antani emphasized that the legislation aims to put Ohio at the forefront of technological advancement and economic development. The bill forces the legislature to act where the board failed to approve the use of cryptocurrencies for taxes. He said:
“The State Board of Deposits should have taken action, and since they didn’t, we will.”
The bill also allows state universities and public pension funds to invest in cryptocurrencies, giving these institutions more flexibility in their financial strategies.
Stately Renaissance
Several states have explored or introduced legislation in recent years that would allow the use of crypto for state-related payments, despite the Biden administration’s cautious approach to the sector.
Congressman Matt Gaetz recently introduced a bill to allow crypto payments for federal taxes, including during changing tides. Most of these efforts reflect growing interest in using crypto for state payments, although adoption has been slow because the legislative process can vary widely between states.
New Hampshire was among the first to explore such legislation, but the bill failed to pass. Ohio’s previous attempt in 2018 under Mandel was an important step but was short-lived due to regulatory concerns.
With this renewed push from Antani, Ohio could become the second state to successfully implement such a program again after Colorado began accepting crypto for taxes in 2022 under Governor Jared Polis.
Wyoming and Arizona came close to passing bills that would allow tax payments in crypto, with the former seeing more success. Arizona lawmakers have introduced a bill that would allow Bitcoin to be used as legal tender for tax payments, but constitutional issues have slowed its progress.
Meanwhile, Wyoming, already known for its crypto-friendly policies, is considering legislation to allow crypto payments for state sales and use taxes, while Louisiana recently announced it would begin accepting crypto for state services, starting with the Department of Wildlife and Fisheries amid of his pro-crypto push.