Breaking: Colorado becomes the first state to accept Bitcoin as payment for taxes

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(Kit­co News) — The U.S. state of Col­orado has just become the first state to accept cryp­to for tax pay­ments. Col­orado Gov­er­nor Jared Polis announced the new devel­op­ment at the 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 on Pay­Pal per­son­al accounts, and users are required to have the full val­ue of an invoice held in a sin­gle cryp­tocur­ren­cy in their Pay­Pal cryp­to hub account. 


Busi­ness accounts are not per­mit­ted to make cryp­tocur­ren­cy pay­ments at this time. The fee to use the ser­vice is $1.00 plus 1.83% of the pay­ment amount. Addi­tion­al fees, such as Pay­Pal pur­chase fees or miner/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 long-time 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 fundrais­ing for his reelec­tion cam­paign by sell­ing non­fun­gi­ble tokens (NFTS) for $52.80 each. As of Mon­day, 175 of the NFTs have been sold since June. 






Ear­li­er in 2022, Polis expressed his inten­tions to push for cryp­to tax pay­ments in the state, which has now become a reality. 


“As a state, we’re on the fore­front of dig­i­tal inno­va­tion, whether it’s apply­ing blockchain and shared-ledger tech­nol­o­gy as a new mod­el for fund­ing, or whether it’s sim­ply being con­sumer-friend­ly and mak­ing sure that we allow for the kind of inno­va­tion that will dis­rupt lega­cy busi­ness prac­tices and gov­ern­ment prac­tices to make them more effi­cient,” Polis said dur­ing an event this week, accord­ing to the Den­ver Busi­ness Jour­nal


Fol­low­ing this new inte­gra­tion, Col­orado cit­i­zens can use cryp­tocur­ren­cy to pay indi­vid­ual income tax, busi­ness income tax, sales and use tax, with­hold­ing tax, sev­er­ance tax and excise fuel tax.

 



Dis­claimer: The views expressed in this arti­cle are those of the author and may not reflect those of Kit­co Met­als Inc. The author has made every effort to ensure accu­ra­cy of infor­ma­tion pro­vid­ed; how­ev­er, nei­ther Kit­co Met­als Inc. nor the author can guar­an­tee such accu­ra­cy. This arti­cle is strict­ly for infor­ma­tion­al pur­pos­es only. It is not a solic­i­ta­tion to make any exchange in com­modi­ties, secu­ri­ties or oth­er finan­cial instru­ments. Kit­co Met­als Inc. and the author of this arti­cle do not accept cul­pa­bil­i­ty for loss­es and/ or dam­ages aris­ing from the use of this publication. 

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