Ohio Crypto Tax Bill Faces Uphill Battle
Ohio state senator Niraj Antani has proposed a bill that would allow residents and businesses to pay taxes using cryptocurrencies. While the proposal aims to position Ohio as a leader in crypto adoption, it faces significant skepticism regarding its viability.
What’s in the Bill?
The bill would require the state and local governments to accept bitcoin and other cryptocurrencies as payment for taxes. It would also allow state universities and pension funds to invest in crypto.
Why It’s Unlikely to Pass
- The bill has slim chances of passing. Introducing legislation is often a way to express gratitude for donations, signal policy direction, or other intentions that are distinct from actually advancing the bill into law.
- Ohio has tried this before. In 2018, the state briefly accepted bitcoin for tax payments through OhioCrypto.com. However, the program was quickly suspended after the Ohio Attorney General raised concerns.
- Crypto’s volatility poses a challenge. Unlike the US dollar, which maintains a stable value, cryptocurrencies are known for their price fluctuations. This could complicate tax collection and expose the state treasury to financial risks.
- There are regulatory hurdles. The Ohio State Board of Deposits and the Ohio Attorney General have already expressed opposition, based on the failed 2018 initiative.
- Security concerns exist. The increasing number of crypto hacks and scams raises serious questions about the security of a crypto-based tax collection system.
The bill’s journey through the Ohio General Assembly will likely be fraught with scrutiny and debate. It will need to gain support from lawmakers and ultimately receive the governor’s signature to become law.
