03/06/2024

House Bill 406

Lead Sponsors: Representative Steve Demetriou

Status: 1st Hearing in House Financial Institutions (May 21, 2024)

Description: The bill makes a number of changes to state law as it pertains to digital assets, such as digital currency (the most well-known example of digital currency is Bitcoin, for example). The bill explicitly prohibits charter counties from imposing a fee, tax, assessment, or other charge on digital assets unless the fee, tax, assessment, or charge would also apply if the transaction was made with the legal tender of the United States.

For example, an individual who makes a purchase using Bitcoin is still required to pay sales tax on the transaction, but a charter county may not impose an additional "digital currency charge" on the transaction.

The bill also prohibits the state and political subdivisions from adopting or enforcing restrictions on an individual's ability to "mine" digital assets, provided that individual is in compliance with applicable restrictions concerning noise in residentially zoned areas. 

CCAO Position: No position (as of July 2024)