The American state of Colorado now accepts cryptocurrency for tax payments, Gov. Jared Polis announced on Monday. The option is already available on the state Department of Revenue website.
Colorado tax payments are accepted through the PayPal Cryptocurrency Hub with service fees of $1.00 plus 1.83% of the payment amount. Payments are accepted only from personal accounts in a single cryptocurrency. Businesses cannot pay their taxes via crypto yet. Payments will be effective on the day they are initiated, although it will take three to five days for the transfer to take place. Payments are immediately converted into fiat.
“We’re just showing again, from a customer service perspective, how Colorado is tech-forward in meeting the ever-changing needs of businesses and residents.”
Polis is a long-time crypto supporter and aadvocate for the tech industry in his state. As a member of the U.S. House of Representatives, Polis was active in cryptocurrency legislation and was a founding member of the Congressional Blockchain Caucus.
Other states have tried to institute tax payments in crypto. Ohio was the first to do so in 2018, but it suspended the service a year later due to legal complications. New Hampshire tried repeatedly to adopt crypto tax payments, but the bills did not make it out of the state legislature, and states such as Georgia, Illinois and Arizona have considered it.