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US State, Colorado Accepts Tax Payments in Cryptocurrencies

Colorado Department of Revenue now accepts cryptocurrency for tax payments.Governor of Colorado said that Colorado is tech-forward to meet the changing needs of businesses and...
US State, Colorado Accepts Tax Payments in Cryptocurrencies US State, Colorado Accepts Tax Payments in Cryptocurrencies
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  • Colorado Department of Revenue now accepts cryptocurrency for tax payments.
  • Governor of Colorado said that Colorado is tech-forward to meet the changing needs of businesses and residents.
  • Paypal charges $1 plus 1.83% of the payment as a transaction fee.

The Colorado Department of Revenue stated that it will be accepting cryptocurrency for tax payments. According to the Colorado state payment portal, residents in Colorado will be able to pay the levy fee with cryptocurrency via Paypal.

As such, individuals and businesses can now pay their tax duties, which include individual income tax, business income tax, sales and use tax, withholding tax, severance tax, and excise fuel tax, using crypto assets.

Commenting on the adoption of crypto into tax payment at the Denver Startup Week event, Jared Polis, Governor of Colorado, said:

We’re just showing again, from a customer service perspective, how Colorado is tech-forward in meeting the ever-changing needs of businesses and residents.

As per the sources, individuals will be able to select the payment method on the revenue payment website as crypto and proceed with the payment. However, there will be an additional charge of $1 and 1.83% of the payment pegged with crypto payments.

Bloomberg reports that since Colorado cannot accept cryptocurrencies itself, the Colorado Department of Revenue has contracted with a third-party organization, Paypal, to broker each transaction by converting digital currencies to US dollars. Hence, the inclusion of a surcharge.

Moreover, a spokesman for Paypal said that tax payments made with selective currencies such as Bitcoin, Bitcoin Cash, Ether, and Litecoin are accepted as of now. Ohio was the first state to adopt crypto as tax payment in 2018. Nonetheless, it had to abort crypto within a year due to legal complications.

The post US State, Colorado Accepts Tax Payments in Cryptocurrencies appeared first on Coin Edition.

See original on CoinEdition

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