In November 2021, Jared Polis, Governor of Colorado, announced plans to make the state a stronghold for the cryptocurrency industry. Three months later, in February 2022, he announced that Colorado was considering allowing tax payments in crypto. It is now done! Find out how the implementation of this project will take place.
Pay taxes in crypto with low transaction fees
Colorado residents now have the option to pay their taxes in crypto. This measure will apply to six types of taxes. These are personal income tax, business income tax, payroll tax, severance pay, sales and use tax. The last is the fuel excise tax.
Colorado becomes the first state in the United States to accept crypto as payment.
According to Governor Jared Polis, these crypto payments will cost less than credit card transactions. The service charge is expected to be $1 plus 1.83% of the full payment. However, the leader indicated that additional taxes may be applied afterwards. Only taxpayers who have chosen direct debit will not pay any fees.
Note that payment by credit card involves a fee of $0.75, plus 2.25% of the total.
To realize this project, the State of Colorado worked in collaboration with the crypto arm of PayPal. For this purpose, tax payments will be made through taxpayers’ personal PayPal accounts. It is important to note that each payment must be made entirely from a single crypto.
Colorado Residents Can Pay Six Types of Taxes and Fees via their crypto assets through PayPal. Governor Jared Polis said: We tout Colorado as the center of the cryptoeconomy.“. He continued:“Not only do we have very supportive laws and rules, but we also have a great innovation ecosystem here”.
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