Since the Colorado government cannot itself receive crypto, the Revenue Department has collaborated with PayPal which is supposed to broker each exchange of assets and spontaneously modify the virtual token into USD.
Colorado citizens can now pay their taxes in crypto like Bitcoin and Ether, via the first state tax payment proposal in collaboration with PayPal, according to the State’s Department of Revenue.
People and enterprises will be allowed to trade in cryptocurrency assets to pay tax duties under Colorado’s main tax policy, which includes individual income tax, business income tax, sales and use tax, etc. Other alternatives to payment of taxes comprise methods like cash, check, money order, credit or debit card, and E-check.
Since the Colorado government cannot itself receive crypto, the Revenue Department has collaborated with PayPal which is supposed to broker each exchange of assets and spontaneously modify the virtual token into USD. This implies the payment will be priced higher than usual, as the payment processor will charge a fee for every transaction too. Initially, tax payments were opened only to Bitcoin.
In February this year, Governor Jared Polis disclosed plans to approve cryptocurrency for tax payments by the end of July. This payment method allows Colorado citizens to leverage crypto for payments of taxes of severance and withholdings too.
PayPal charges $1 in addition to 83℅ on the payment amount. While Colorado has begun its crypto project with a soft launch on September 1, other states like Florida and Ohio have examined the crypto method for tax payments.
Utah happens to be the only additional state that has moved forward with the acquisition of virtual tokens for the payment of tax debts. Ohio, which had a program back in 2018, had to abolish it soon as Attorney General Dave Yost authorized a statement claiming that the state treasurer was never given the legitimate authority to manage the program.
It is believed that this move can have a rather positive impact on the further adoption of crypto among a wide audience.
Sanaa is a chemistry major and a Blockchain enthusiast. As a science student, her research skills enable her to understand the intricacies of Financial Markets. She believes that Blockchain technology has the potential to revolutionize every industry in the world.
