Ohio Lawmakers Propose Bill To Exempt Digital Assets From Additional Taxes

According to Cointelegraph, lawmakers in Ohio have introduced a bill aimed at preventing the state legislature from imposing additional taxes on digital assets when used as a payment method. Ohio House Bill 116, introduced on February 24 by Representative Steve Demetriou and co-sponsored by Tex Fischer, Brian Lorenz, Ty D. Mathews, Riordan McClain, and Josh Williams, seeks to amend existing legislation to ensure that municipalities cannot impose extra taxes or fees on crypto assets beyond those applied to traditional fiat transactions. The bill specifies that the general assembly shall not enact legislation imposing fees, taxes, assessments, or other charges on digital assets used for payment of goods and services. It defines "digital assets" to include cryptocurrencies, stablecoins, and non-fungible tokens. While taxes typically applied to legal tender, such as state or sales taxes, would still apply to crypto transactions, the bill emphasizes that no new levies should be introduced. Additionally, the "Ohio Blockchain Basics Act" asserts that no state agency or political subdivision may prohibit individuals from accepting crypto assets as payment for goods and services. The bill also grants Ohio residents the right to self-custody their digital assets using hardware or self-hosted wallets and participate in crypto staking. Furthermore, activities such as mining, staking, and exchanging crypto assets for other crypto assets do not require "money transmission" licensing under existing Ohio laws. The proposed legislation also addresses crypto mining, allowing individuals to engage in mining activities in residential areas as long as they comply with local zoning regulations. Mining businesses are explicitly permitted in industrial zones and cannot be unfairly targeted by local zoning changes. Additionally, Ohio state retirement funds will 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 representatives have been active in proposing crypto-related legislation in recent months. In September, Ohio Senator Niraj Antani introduced a bill requiring the state to accept cryptocurrency for payment of state taxes and fees. In December, Ohio House Republican leader Derek Merrin introduced HB 703, aiming to establish a strategic Bitcoin reserve for the state. Meanwhile, Ohio Senator Sandra O’Brien introduced another bill in February to create an "Ohio Bitcoin Reserve Fund," with a five-year holding period.