Colorado residents now have the ability to pay their state taxes using bitcoin and cryptocurrency, but only with a PayPal Account.
Colorado is now the first state in America to accept Bitcoin for tax payments.
Gov. According to Axios Denver, Jared Polis announced Monday that the new payment method was being implemented.
According to the report, cryptocurrency can be used by citizens to pay individual income tax, business tax, sales tax, and use tax.
The Department of Revenue of the state government now lists cryptocurrency as a payment option among the well-established debit cards and credit cards, ACH debit, credit and cash.
Users who want to sell their bitcoins in Colorado to pay state taxes must use a PayPal account.
Colorado's Department of Revenue explains that only PayPal Personal accounts can use cryptocurrency. They also state that the user must have all of the invoice value in one cryptocurrency in their PayPal Cryptocurrencies hub.
For citizens who pay their taxes using cryptocurrency, an additional $1 and 1.83% will be charged in fees.
U.S. states have raced for the trophy of the most cryptocurrency-friendly jurisdiction as they seek to attract workers and businesses of the new remote-first economy.
It is difficult to argue for bitcoin taxes, especially with Colorado's fixed arrangement of PayPal. Although the user may be able to forgo future capital appreciation due to the bitcoin price, the buying power would not be transferred to Colorado since the state does not seek to have BTC or cryptocurrency in its balance sheet.
Title: Colorado Becomes First US State To Accept Bitcoin As Payment For Taxes
Sourced From: bitcoinmagazine.com/legal/colorado-now-accepts-bitcoin-payments-for-taxes
Published Date: Tue, 20 Sep 2022 15:29:32 GMT