Colorado residents can use digital currency to pay all kinds of taxes, including personal and business taxes.
Coloradans can now pay their taxes with cryptocurrency, thanks to a plan announced earlier this year by Gov. Jared Polis.
According to Polis, the state of Colorado is now officially accepting cryptocurrencies as a method of payment for all taxes. “We’ve been discussing this for a while. They have fulfilled their promise to deliver by the end of the summer.
Polis made the announcement during the 11th annual Denver Startup Week press conference on Monday. He described the payment program, which went into effect on September 1, as an example of Colorado being “tech-forward.”
Coloradans can use digital currency to pay a variety of taxes, including personal and business income taxes, withholding taxes, sales and use taxes, severance taxes, and excise fuel taxes.
“The state will keep its own dollar ledger.” According to Polis, taxpayers who use cryptocurrencies to pay their taxes will have their transactions converted to dollars.
According to the Polis administration, Colorado is the first state in the country to begin accepting cryptocurrency for tax payments. According to Daniel Carr, a spokesman for the Ohio Department of Revenue, the state of Ohio had a pilot program a few years ago but did not proceed with accepting digital currency.
Heather Morton, who handles matters relating to cryptocurrencies and digital assets for the National Conference of State Legislatures, claims that Utah legislators approved a bill this year allowing the use of cryptocurrencies to pay for participating governmental entities and political subdivisions.
According to Morton, the Utah legislation requires the state Division of Finance to contract with a third party by January 1, 2023, to set up the process. She added that a 2019 Colorado law authorized the state to accept digital currency for tax purposes.
When paying taxes online in Colorado, the Colorado Department of Revenue website has been updated to include cryptocurrency as a payment option. People will be taken to PayPal, where they can choose which cryptocurrency to use.
The service fee is $1 plus 1.83% of the total amount paid. Tax refunds will not be given in cryptocurrency.
Carr stated that the volatility of cryptocurrency values does not raise concerns about continuing with the program. He explained that the cryptocurrency payments would happen through PayPal Cryptocurrencies Hub, which would adjust the crypto values in real-time.
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