Colorado Now Accepts Bitcoin Payments For Taxes CryptoBlog

Colorado has become the first US state to accept bitcoin for tax payment.

Governor Jared Polis announced the implementation of the new payment method Monday during Denver Startup Week, according to a report from Axios Denver.

Citizens can use cryptocurrency to pay personal income tax, corporate income tax, sales and use tax, withholding tax, layoff tax, and tax. excise taxes on fuel are eligible, according to the report.

The state government’s Department of Revenue now lists “cryptocurrency” as a method of payment among the most well-established debit and credit cards, ACH debit and credit cards, and cash.

However, users wishing to part with their bitcoin holdings to pay Colorado state taxes must use a PayPal account.

“Only personal PayPal accounts can pay using cryptocurrency,” details the Colorado Department of Revenue, adding that the user must have the full value of their bill in a single cryptocurrency in their cryptocurrency hub. PayPal.

Citizens who pay their taxes with cryptocurrency will be charged an additional $1 plus 1.83% of the payment amount in fees.

US states have been racing for the trophy of most cryptocurrency-friendly jurisdiction as they seek to lure new economy workers and businesses remotely.

However, it’s hard to justify paying taxes with Bitcoin, especially in Colorado’s fixed arrangement with PayPal. Although the user is likely foregoing future capital appreciation of bitcoin’s price, this purchasing power would not be transferred to Colorado because the state does not seek to keep BTC or the cryptocurrency on its balance sheet.