Sure, Pay Taxes On Bitcoin ... But Pay Taxes With Bitcoin? Colorado Becomes First State To Let You Do It

Zinger Key Points
  • Colorado Gov. Jared Polis pledges to make the state more cryptocurrency-friendly.
  • Cryptocurrency payments can be made through the PayPal Cryptocurrencies Hub via the state's site.

In April, Colorado Gov. Jared Polis pledged to make the state more cryptocurrency-friendly. On Monday, he took the next step by announcing residents of the state can pay taxes with cryptocurrencies.

What Happened: Polis shared the news at Denver Startup Week, a five-day (Sept. 19 to 23) networking event in the city that focuses on uniting the entrepreneurial community in the city.

According to the state's Department of Revenue, cryptocurrency payments at this time can only be made through the PayPal Cryptocurrencies Hub via the taxpayers' personal accounts.

Eligible taxes include individual income, business income, sales and use, withholding, severance and excise fuel. Citizens paying their taxes with crypto will be charged an additional $1 plus 1.83% of the payment amount in fees.

Why It Matters: A libertarian-leaning Democrat who made a fortune as an internet entrepreneur in the 1990s, this move expands Polis' relationship with blockchain companies in the state.

“Most people don’t trust either big corporations or big government, and that’s what blockchain allows us to solve for,” the governor declared at ETHDenver. “We see it as a critical part of Colorado’s overall innovation ecosystem.”

Polis did make it clear that the state does not intend to hold crypto on its balance sheet and will work with a third party to transfer crypto payments to USD before going to the state's treasury.

Several other states, including Florida and Ohio, have tested accepting crypto for tax payments.

Photo: summer studio via Shutterstock

Posted In: BlockchainColoradoJared PolistaxesCryptocurrencyGovernmentNewsMarketsPersonal FinanceGeneral

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