Breaking: Colorado becomes first state to accept Bitcoin as payment for taxes
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(Kitco News) – The US state of Colorado has just become the first state to accept crypto for tax payments. Colorado Governor Jared Polis announced the new development at Denver Startup Week on Monday.
According to the Colorado Department of Revenue’s (CDR) website, “cryptocurrency” is now listed as a form of payment, with crypto transactions facilitated through the “PayPal Cryptocurrencies Hub.”
Based on the rules outlined by the CDR, cryptocurrency payments will only be available in PayPal personal accounts, and users must have the full value of an invoice in a single cryptocurrency in their PayPal Crypto Hub account.
Business accounts are not allowed to make cryptocurrency payments at this time. The fee for using the service is $1.00 plus 1.83% of the payment amount. Additional fees, such as PayPal purchase fees or mining/gas fees, may also apply.
Crypto payment options currently supported by PayPal include Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH) and Litecoin (LTC).
This development from Polis is not surprising as the governor, who was elected in 2019, is a longtime crypto advocate and one of the co-founders of the Congressional Blockchain Caucus in 2016.
As an interesting side note, Governor Polis accepts campaign contributions in the form of crypto and is currently raising money for his re-election campaign by selling non-fungible tokens (NFTS) for $52.80 each. As of Monday, 175 of the NFTs have been sold since June.
Earlier in 2022, Polis expressed its intentions to push for the payment of crypto tax in the state, which has now become a reality.
“As a state, we’re at the forefront of digital innovation, whether it’s using blockchain and shared ledger technology as a new model for finance, or whether it’s simply being consumer-friendly and making sure we enable that kind of innovation that will disrupt legacy business practices and government practices to make them more efficient,” Polis said at an event this week, according to the Denver Business Journal.
Following this new integration, Colorado citizens can use cryptocurrency to pay individual income tax, corporate income tax, sales and use tax, withholding tax, severance tax and fuel taxes.
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