Ohio has proposed a new bill that would exempt crypto payments from state taxation.
The legislation not only provides tax relief but also compels state pension funds to assess crypto ETFs and safeguards self-custody and mining practices.
Ohio lawmakers have introduced a bill that prevents the state legislature from levying taxes on digital assets used in transactions.
Representative Steve Demetriou introduced Ohio House Bill 116 on February 24, with co-sponsorship from Tex Fischer, Brian Lorenz, Ty D. Mathews, Riordan McClain, and Josh Williams. This bill amends existing law to prevent municipalities from applying additional fees or taxes to cryptocurrency transactions that exceed those imposed on traditional fiat payments.
“The general assembly shall not enact a bill that proposes to impose a fee, tax, assessment, or other charge on digital assets used as a method of payment for goods and services,” it reads.
The bill defines “digital assets” as non-fungible tokens, stablecoins, and cryptocurrencies.
The bill clarifies that while crypto transactions remain subject to standard taxes like state and sales taxes, municipalities cannot implement extra levies.
Under the “Ohio Blockchain Basics Act,” state agencies and local authorities cannot restrict individuals from receiving cryptocurrency as a form of payment.
The proposed law ensures that residents can securely hold their digital assets using self-hosted or hardware wallets while also participating in crypto staking.
The bill states that Ohio’s existing laws do not require individuals to obtain a “money transmission” license for activities like crypto mining, staking, or exchanging digital assets.
Residents can conduct crypto mining at home as long as they comply with applicable local zoning laws.
Mining operations can legally operate in industrial zones, and local zoning law changes cannot unjustly restrict them.
The bill requires Ohio’s state pension funds to review the feasibility of investing in a crypto ETF, weigh its risks and benefits, and report their conclusions to the General Assembly within a year.
Over the last several months, Ohio legislators have aggressively pushed forward various cryptocurrency-related proposals.
Senator Niraj Antani led a group of Ohio lawmakers in introducing a bill in September that advocates for cryptocurrency acceptance for state tax and fee payments.
Ohio House Republican leader Derek Merrin proposed HB 703 in December to establish a Bitcoin reserve for the state.
In February, Senator Sandra O’Brien introduced a bill to create an “Ohio Bitcoin Reserve Fund” with a five-year asset retention requirement.
