The legislative initiative on cryptocurrency taxation in Ohio has progressed with the passage of House Bill 116, potentially simplifying tax obligations for small transaction users.
What is House Bill 116?
House Bill 116, introduced by State Representative Steve Demetriou, aims to create a more favorable environment for cryptocurrency users and possibly the mining industry in Ohio. It received unanimous support from the House Technology and Innovation Committee, indicating a broad interest in regulating crypto operations at the state level.
Key Provision: Tax Exemption for Small Transactions
The most talked-about aspect of HB 116 is its proposal to exempt crypto transactions below $200 from state capital gains tax. This change is poised to simplify the use of crypto for everyday purchases. Currently, selling or exchanging crypto triggers a tax obligation even for minor transactions, like buying coffee. This exemption is aimed at easing that tax burden for small purchases.
What’s Next for the Ohio Tax Bill?
The HB 116 bill will now move to the Ohio Senate for further consideration. Senators may propose amendments to the bill and then vote on it. If it passes the Senate, it will require the signature of Governor Mike DeWine to become law.
The passage of HB 116 in Ohio is a promising indication for cryptocurrency users. The proposed tax exemptions for transactions under $200 could simplify the use of cryptocurrencies for residents of the state. However, the bill still has several stages to navigate before final approval.
