Colorado Becomes the 1st US State to Allow Tax Payments in Crypto

by in Cryptocurrency News

Colorado cryptocurrencies

Colorado becomes the first state in the USA that allows residents to use crypto for tax payments. Governor Jared Schutz Polis revealed the news at Denver Startup Week, saying that Colorado is showing again from a customer service point that it's technologically advanced and inclined to meet the changing needs of citizens and customers.

Related: Colorado authorities implement the possibility of paying taxes in crypto

The governor announced the plans in February, saying Colorado was looking for partners to implement crypto transactions.

The official website of Colorado's Department of Revenue added digital assets as an option to pay taxes. Citizens can make electronic payments via the PayPal Cryptocurrencies Hub. Currently, the option is available only for PayPal Personal accounts and not for Business accounts.

Crypto can serve as a payment method for income tax, sales and use tax, withholding tax, severance tax and excise fuel tax. There’s a service charge of $1 for a transaction along with 1.83% of the payment amount. In addition, PayPal purchase fees and other charges may occur.