Ohio currently satisfies one of the seven policies measured by the Sound Money Score. The state exempts qualifying investment bullion and coins from sales tax.

Ohio does not currently exempt precious-metals gains from state income tax, recognize gold and silver as legal tender, maintain a state precious-metals depository or verified bullion reserve, accept tax payments in precious metals, provide a specific anti-confiscation protection, or require courts to enforce precious-metals contracts through delivery of the agreed metal.

There has been recent legislative activity. House Bill 206, introduced in 2025, would require the Treasurer of State to establish a gold- and silver-backed transactional currency. The bill remains in the House Financial Institutions Committee and has not become law. A previous proposal, House Bill 481 during the 2023–2024 session, would have exempted precious-metals capital gains and required the Treasurer to accept bullion or specie for debts owed to the state, but it did not advance beyond committee.

1. Are Purchases of Precious Metals Exempt from Sales Tax in Ohio?

Yes

Ohio exempts sales of investment metal bullion and investment coins from state sales tax.

Ohio law defines investment metal bullion by reference to qualifying bullion under the Internal Revenue Code. It defines an investment coin as a coin composed primarily of gold, silver, platinum, or palladium. The statute does not impose a minimum purchase threshold.

Ohio therefore receives one SMS point in this category.

2. Are Sales of Precious Metals Exempt from Capital Gains Tax in Ohio?

No

Ohio imposes an individual income tax, and gains included in federal adjusted gross income generally flow into the state tax calculation unless Ohio law provides a specific adjustment. Ohio has not enacted a general exemption for gains from the sale or exchange of gold, silver, or other precious metals.

House Bill 481, introduced during the 2023–2024 General Assembly, proposed exempting capital gains from bullion or specie from state and school-district income taxes. The bill remained in House committee and did not become law.

Ohio therefore receives no SMS point in this category.

3. Does Ohio Have Legal Tender Recognition for Gold and Silver?

No

Ohio has not enacted a current statute recognizing gold or silver specie as legal tender for voluntary private transactions.

House Bill 206, introduced on March 31, 2025, would require the Treasurer of State to issue specie and establish a transactional currency backed by gold or silver. The proposed currency and specie would be usable as legal tender and transferable electronically. The constitutionality of such a proposal remains in serious question because this could violate art 1. sec. 10, by having the state ussie its own currency, rather than recognize the legal tender status of gold and silver. This distinction between issuing currency and recognizing legal tender status is central to the legal theories regarding sound money adoption in states. For this reason, this bill was opposed by Citizens for Sound Money and the Sound Money Trade Association.

As of July 2026, House Bill 206 remains in the House Financial Institutions Committee. It has not been reported by the committee or passed by either chamber. Because the proposal is not operative law, Ohio receives no SMS point in this category.

4. Does Ohio Maintain a State Precious Metals Depository or Hold State Funds in Gold or Silver?

No

Ohio does not currently operate a state precious-metals depository. No official record reviewed for this report establishes that Ohio maintains verified and segregated holdings of physical gold or silver as part of its state reserves. The State Treasury Asset Reserve of Ohio, known as STAR Ohio, is a public investment pool focused on high-grade, short-term securities. It is not a precious-metals depository or physical bullion reserve.

House Bill 206 would require the Treasurer to approve a bullion depository for the proposed transactional currency. The approved facility could be an Ohio depository controlled by the state, the Texas Bullion Depository, or a similar domestic facility. The bill would also allow the Treasurer to contract with a private vendor. These provisions remain proposals and do not qualify for an SMS point.

Ohio therefore receives no SMS point in this category.

5. Does Ohio Have Any Mechanism to Accept Tax Payments in Precious Metals?

No

Ohio does not currently maintain an operating mechanism through which taxpayers may pay state taxes or fees using physical gold, silver, or a precious-metals-backed account. House Bill 481 would have required the Treasurer of State to accept bullion or specie as payment for debts owed to the state. The bill did not advance beyond committee during the 2023–2024 session. House Bill 206 would create a transferable gold- and silver-backed currency, but the bill does not currently provide an operative tax-payment system because it has not become law.

Ohio therefore receives no SMS point in this category.

6. Does Ohio Law Include Any Anti-Confiscation Protections for Gold or Silver?

No

No current Ohio statute was identified that specifically prohibits the state from confiscating, requisitioning, or compelling the surrender of privately owned gold or silver.

House Bill 206 contains a privacy provision restricting disclosure of information related to depository accounts except by order of a court with proper jurisdiction. That provision would protect account information, but it would not establish a broad anti-confiscation right. The bill also has not become law.

Ohio therefore receives no SMS point in this category.

7. Does Ohio Have a Statute Enforcing Precious Metals Contracts Through Payment in Precious Metals Rather Than Dollars?

No

Ohio does not have a statute requiring courts to enforce a contract calling for payment in gold or silver through delivery of the agreed metal rather than an equivalent dollar judgment.

House Bill 206 would create transferable and redeemable gold- and silver-backed currency, but it does not establish an operative statewide rule requiring courts to enforce all private precious-metals contracts in metal.

Ohio therefore receives no SMS point in this category.

Use of Gold and Silver in Commerce

Ohio has an established private market for bullion and coins. Its sales-tax exemption reduces the cost of purchasing qualifying investment metals and coins. Private parties may voluntarily accept gold, silver, bullion, coins, or other property as payment. However, Ohio does not currently grant state legal-tender status to precious metals or provide a state-supported bullion payment system.

House Bill 206 represents the most significant current proposal affecting commercial use. It would establish a fully backed transactional currency representing fractional troy-ounce interests in gold or silver held in an approved depository. Holders could transfer the currency electronically or redeem it for dollars, specie, or bullion.

The proposal could expand practical use of precious metals, but its structure deserves careful review. Citizens for Sound Money encourages lawmakers to rely on qualified private custody providers wherever possible rather than place the state in direct competition with private vault and payment businesses.

Overall Assessment

Strengths:

* Sales-tax exemption for qualifying investment bullion and coins.
* No minimum purchase threshold in the statutory exemption.
* Established private bullion and coin market.
* Current legislative interest in a gold- and silver-backed transactional currency.
* House Bill 206 permits the Treasurer to use a private vendor or an existing qualified depository.

Remaining Weaknesses:

* No precious-metals capital-gains exemption.
* No enacted legal-tender recognition.
* No state precious-metals depository.
* No verified state holdings of physical bullion.
* No mechanism for paying taxes in precious metals.
* No precious-metals-specific anti-confiscation statute.
* No statute guaranteeing enforcement of precious-metals contracts through payment in metal.
* No operating statewide bullion-backed payment infrastructure.

Legislative Opportunities:

Ohio could raise its SMS by:

* enacting a state income-tax exemption for gains from gold and silver;
* recognizing defined gold and silver specie as legal tender while preserving voluntary acceptance;
* creating a practical bullion-backed transaction system through qualified private depositories and payment providers;
* allowing taxes and fees to be paid through fully reserved precious-metals accounts;
* authorizing a prudent and audited allocation of state reserves to segregated physical bullion;
* adopting specific protections against confiscation or compulsory surrender without constitutionally sufficient judicial process; and
* requiring courts to enforce voluntary precious-metals contracts according to their agreed metallic terms.

House Bill 206 provides a possible vehicle for legal-tender and transactional-currency reforms. However, the bill should be evaluated carefully to ensure clear ownership rights, regular independent audits, full physical backing, competitive private custody, reasonable redemption terms, and protection against unnecessary state control of the market.

A renewed version of House Bill 481 could separately address capital-gains taxation and payments owed to the state. Its failure during the previous General Assembly means those reforms would need to be reintroduced or incorporated into another bill.

Summary

Ohio earns one point because qualifying investment bullion and coins are exempt from state sales tax.

The state has not enacted the other six policies measured by the Sound Money Score. Ohio continues to tax precious-metals gains, does not recognize gold and silver as legal tender, and has no operating bullion depository, verified state bullion reserve, precious-metals tax-payment mechanism, anti-confiscation statute, or specific contract-enforcement protection.

House Bill 206 demonstrates current legislative interest in creating a gold- and silver-backed transactional currency, but proposed legislation does not receive an SMS point until it becomes operative law.

Ohio Sound Money Score: 1 of 7