The US state of Colorado will now accept cryptocurrency for tax payments, Governor Jared Polis announced on Monday. The option is already available on the State Department of Revenue website.
Colorado tax payments are accepted at PayPal Cryptocurrency Hub with a $1.00 service fee and a fee rate of 1.83%. Payments are accepted only from personal accounts in one cryptocurrency. Businesses cannot yet pay their taxes in crypto. The payment will take effect on the day of withdrawal, although it will take three to five days to process the transfer. Payments are instantly converted to fiat.
Colorado’s governor said he expects the state to start accepting crypto payments early this year. At the launch of Denver Startup Week, Police talked about the new payment option:
“From a customer service standpoint, we’re once again demonstrating how Colorado can stay ahead of the curve with technology to meet the ever-changing needs of businesses and residents.”
Police has been a long-time supporter and supporter of the technology industry in the state. As a member of the US House of Representatives, Polis has been active in cryptocurrency legislation and was a founding member of the Congressional Blockchain Caucus.
I’m beyond excited to announce that my campaign is dropping an exclusive set of NFT’s!
I always support new technologies and look forward to being among the first to implement NFT into campaigns. https://t.co/RS15wG8ox4
— Jared Polis (@PolisForCO) June 13, 2022
Other states have tried to establish tax payments in crypto. Ohio was the first in 2018, but suspended the service after a year due to legal issues. New Hampshire has repeatedly tried to adopt crypto-tax payments, but bills haven’t made it out of the state legislature, and states like Georgia, Illinois, and Arizona are considering it.
Related: Colorado Accepts Tax Payments in Crypto: Was It Only a Matter of Time?
US cities have shown interest in accepting crypto payments. The capital, Denver, has been identified as one of the top US cities for crypto hiring in 2021.