HB 116: Enact the Ohio Blockchain Basics Act
The bill aims to address the regulation of digital assets in Ohio. It prohibits local governments from imposing taxes or fees on the sale, use, or consumption of auxiliary containers or digital assets used as a method of payment. However, it allows for the imposition of taxes or fees on receipts received from the sale of these items, as long as the transaction would apply if the payment had taken place with legal tender. The bill also clarifies the definition of municipal taxable income and ensures consistency with federal income tax laws. Additionally, it provides that the powers of counties regarding certain subjects remain unaffected.<br>the bill provides tax exemptions and exclusions for certain types of income and expenses. for residents, income earned from pass-through entities is subject to taxation, but net operating losses can be carried forward for use in future years. nonresi…
| Jun. 25, 2025 | Referred to committee: Financial Institutions, Insurance and Technology |
| Jun. 24, 2025 | Introduced |
| Jun. 18, 2025 | Passed |
| Jun. 18, 2025 | Reported - Substitute: Technology and Innovation |
| Feb. 26, 2025 | Referred to committee: Technology and Innovation |
As Reported by the House Technology and Innovation Committee
136th General Assembly
Regular Session
2025-2026
Sub. H. B. No. 116
Representative Demetriou
Cosponsors: Representatives Fischer, Lorenz, Mathews, T., McClain, Williams, Claggett
To amend sections 301.30, 504.04, 715.013, 718.01, 1315.01, and 5747.01 and to enact sections 1352.01, 1352.02, 1352.03, and 1352.04 of the Revised Code to enact the Ohio Blockchain Basics Act to address mining, taxation, and regulation of digital assets.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 301.30, 504.04, 715.013, 718.01, 1315.01, and 5747.01 be amended and sections 1352.01, 1352.02, 1352.03, and 1352.04 of the Revised Code be enacted to read as follows:
Sec. 301.30.
No county that has adopted a charter under Section 3 of Article X, Ohio Constitution, may impose either of the following:
(A) Impose a fee, tax, assessment, or other charge on auxiliary containers, on the sales, use, or consumption of such containers, except as authorized in Chapters 5739. and 5741. of the Revised Code, or on the basis of receipts received from the sale of such containers. As used in this section, "auxiliary container" has the same meaning as in section 3767.32 of the Revised Code.
(B) Impose a fee, tax, assessment, or other charge on digital assets used as a method of payment for goods and services that is based on the use of the digital assets as a method of payment, on the sales, use, or consumption of such digital assets, or on the basis of receipts received from the sale of such digital assets. As used in this section, "digital asset" has the same meaning as in section 1352.01 of the Revised Code.
Division (B) of this section does not prohibit the imposition of a fee, tax, assessment, or other charge if the fee, tax, assessment, or charge would apply if the transaction had taken place with legal tender of the United States.
Sec. 1352.01.
As used in this chapter:
(A) "Blockchain" means data that is both of the following:
(1) Shared across a peer-to-peer network to create a ledger of verified transactions or information among network participants linked together using cryptography to maintain the integrity of the ledger and to execute other functions:
(2) Distributed among network participants in an automated fashion to concurrently update network participants on the state of the ledger and any other functions.
(B) "Blockchain protocol" means any executable software that is all of the following:
(1) Governed by a set of predefined rules which execute autonomously without human intervention and can be altered by some predetermined mechanism:
(2) Deployed to a blockchain, typically referred to as a smart contract, including an additional standardized set of rules based on a previously existing blockchain:
(3) Used to facilitate the transfer of data and electronic records and allow that data and those electronic records to be broadcast to nodes.
(C) "Digital asset" means virtual currencies, cryptocurrencies, native electronic assets, including stablecoins and non-fungible tokens, and other digital-only assets that confer economic, proprietary, or access rights or powers.
(D) "Digital asset mining" means using computer hardware and software specifically designed or utilized for the purpose of validating data and securing a blockchain network.
(E) "Digital asset mining business" means multiple digital asset mining devices at a single site that consume more than one megawatt of electricity on an average annual basis for the purpose of generating digital assets by securing a blockchain network.
(F) "Digital asset mining device" means computing hardware specifically designed or utilized to participate in digital asset mining for the purpose of securing a blockchain network.
(G) "Hardware wallet" means a physical device that is not continuously connected to the internet, allows an individual to secure and transfer digital assets, and under which the owner of the digital assets retains independent control over the digital assets.
(H) "Node" means a computational device that communicates with other devices or participants on a blockchain to maintain consensus and integrity of that blockchain, create and validate transaction blocks, contain and update a copy of a blockchain, or any combination of the foregoing.
(I) "Political subdivision" means a county, township, or municipal corporation.
(J) "Self-hosted wallet" means a digital interface used to secure and transfer digital assets and under which the owner of the digital assets retains independent control over the digital assets.
(K) "Staking" means committing digital assets to a blockchain network's operations by validating transactions, proposing and attesting to blocks, and securing the network.
(L) "Staking services" means the provision of technical staking services, including the operation of nodes and associated infrastructure necessary to facilitate participation in blockchain networks' consensus mechanisms by the service provider on behalf of an individual or entity that owns the digital asset being staked.
Section 2. That existing sections 301.30, 504.04, 715.013, 718.01, 1315.01, and 5747.01 of the Revised Code are hereby repealed.
Section 3. The amendment by this act of sections 718.01 and 5747.01 of the Revised Code applies to taxable years ending on or after the effective date of this section.
Section 4. This act shall be known as the Ohio Blockchain Basics Act.
Section 5. Section 5747.01 of the Revised Code is presented in this act as a composite of the section as amended by both H.B. 101 and S.B. 154 of the 135th General Assembly. The General Assembly, applying the principle stated in division (B) of section 1.52 of the Revised Code that amendments are to be harmonized if reasonably capable of simultaneous operation, finds that the composite is the resulting version of the section in effect prior to the effective date of the section as presented in this act.