Colorado is the first state in the United States to accept cryptocurrencies for tax payments. Jared Polis, the governor of Colorado, made the fresh announcement on Monday during Denver Startup Week.
Crypto transactions are handled by the “PayPal Cryptocurrencies Hub,” which is listed as a mode of payment on the website of the Colorado Department of Revenue (CDR).
Customers must hold the full amount of an invoice in a single cryptocurrency on their PayPal crypto hub account in order to comply with the CDR’s rules, and cryptocurrency payments will only be supported on personal PayPal accounts.
Payments made using bitcoin cannot currently be made using business accounts. The service has a $1.00 usage fee plus 1.83% of the payment amount. There may be be other charges, like PayPal purchase fees or miner/gas charges.
Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), and Litecoin are the four cryptocurrencies that PayPal now accepts as payment methods (LTC).
The governor, who was elected in 2019, has long been a champion for cryptocurrencies and was one of the co-founders of the Congressional Blockchain Caucus in 2016. As such, this move by Polis is not shocking.
As an interesting side issue, Governor Polis is presently raising money for his reelection campaign by selling nonfungible tokens (NFTS) for $52.80 each. He also takes cryptocurrency donations. Since June, 175 of the NFTs have been sold as of Monday.
Polis stated earlier in 2022 that he intended to advocate for cryptocurrency tax payments in the state, and that has already come to pass.
In terms of digital innovation, the Denver Business Journal states that “as a state, we’re in the vanguard, whether it’s using blockchain and shared-ledger technology as a new paradigm for funding or just being consumer-friendly and ensuring that we allow for the kind of innovation that will disrupt legacy business practises and government practises to make them more efficient.
Since this new integration, residents of Colorado have been able to pay their state’s income taxes, company taxes, sales and use taxes, withholding taxes, severance taxes, and excise taxes using crypto.
