Colorado enables crypto payment for taxes Colorado enables crypto payment for taxes
Residents can pay their individual income tax, severance tax, withholding tax, and excise fuel tax in crypto.
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Updated: Sep. 21, 2022 at 2:25 am UTC
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Colorado residents can now pay their taxes using cryptocurrencies, Axios reported on Sept. 20. According to the report, Governor Jared Polis made this revelation at the Denver Startup Week.
Residents would now be able to pay their individual income tax, severance tax, withholding tax, and excise fuel tax in crypto.
The crypto payment option will be available for both businesses and individuals. In addition, the state plans to open its ledger for transactions and convert the cryptocurrencies into US dollars.
The Governor did not mention the assets that the state would accept.
Polis said:
“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.”
Earlier in the year, Governor Polis promised that the state would start accepting cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) as payment options for taxes in the state.
In 2019, Polis signed a law that exempted cryptocurrencies from securities law affecting other financial instruments.
Colorado’s crypto decision is coming at a time when most digital assets in the industry have lost more than half of their value due to tough macroeconomic conditions.
Colorado is the first state in the US to make cryptocurrencies an acceptable tax payment option.
Meanwhile, several states and cities worldwide have adopted crypto payment options for residents to pay government bills.
In August, the Argentine province of Mendoza made stablecoins options available for residents to pay their taxes.
The government announced that Tether’s USDT and MakerDAO’s DAI would be accepted for taxes and automatically converted into pesos.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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