colorado bitcoin taxes
Bitcoin and altcoins

It’s finally here, Colorado is the first U.S. state to accept Bitcoin to pay taxes

Colorado governor Jared Polis announced the new payment method on Monday at Denver Startup Week, according to a report from Axios Denver. Citizens can use cryptos to pay :

  • personal income tax,
  • corporate income tax,
  • sales and use tax,
  • withholding tax,
  • severance tax and
  • fuel excise tax are eligible.

In February, the governor of Colorado, Jared Polis announced in an interview with CNBC that his state would begin accepting cryptocurrencies for tax payments and other state charges by this summer.

The will of the governor is to offer the possibility of paying their charges and taxes with this payment medium.

According to a study conducted by Pew Research in November 2021, there would be 16% of Americans who said they have already invested, exchanged or used cryptos.

Jared Polis stated in February:

“We plan by this summer – fairly quickly – to accept crypto for all of our state tax-related purposes. Then we plan to roll that out across state government for things like, could be as simple as a driver’s license or hunting license in a few months after that.”

Colorado partners with Paypal

Jared Polis said the state will partner with an exchange to enable the conversion of cryptos to fiat. Jared Polis also made a point of clarifying that he is not too concerned about the volatility of digital assets because his state has no intention of maintaining cryptocurrencies.

“Our budget is still in dollars, our spending is still in dollars and, of course, we don’t want to take the speculative risk of holding cryptocurrencies, so we will have a transactional layer,” the Democrat let loose. “It will enter our systems as dollars.”

Users wishing to part with their bitcoins to pay Colorado state taxes must use a PayPal account.

“Only personal PayPal accounts can pay using cryptos,” the Colorado Department of Finance explains, adding that the user must have the full value of their bill in a single crypto in their PayPal Cryptocurrencies hub.

Citizens who pay their taxes in cryptos will be charged an additional $1, plus 1.83 percent of the payment amount in fees.

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