Colorado Department of Revenue Opens Crypto Tax Payment Door
For the time being, the Colorado Department of Revenue only accepts personal tax payments made through the PayPal Cryptocurrency Hub.
Governor Jared Polis said on Monday that the American state of Colorado officially accepts cryptocurrencies for tax payments. The choice is already there on the website of the state Department of Revenue.
Payments for Colorado taxes are available via the PayPal Cryptocurrency Hub for a service charge of $1 + 1.83% of the total payment. Payments in a single cryptocurrency are only accepted from personal accounts. Taxes for businesses cannot currently be paid using cryptocurrency. Although the transfer will take three to five days to complete, payments will become effective the day they are begun. Payments are converted to fiat right away.
The governor of Colorado predicted that the state will start accepting cryptocurrency payments early this year. At the start of Denver Startup Week, Polis discussed the new payment method and said the following:
“We’re just demonstrating once more how Colorado is tech-forward in meeting the changing demands of companies and citizens from a customer service viewpoint.”
Polis has long been an advocate for the IT sector in his state and a proponent of cryptocurrencies. Polis was involved in bitcoin legislation while serving in the US House of Representatives and was a founding member of the Congressional Blockchain Caucus.
Other states have attempted to implement cryptocurrency tax payments. Ohio was the first to do so in 2018, but a year later it discontinued the program because of legal issues. States like Georgia, Illinois, and Arizona have thought about adopting cryptocurrency tax payments, but New Hampshire has frequently sought to do so. The proposals, however, never made it out of the state legislature.