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Colorado Revenue Department now allows submission of personal taxes through crypto assets

Multiple states alongside Colorado start on the journey of accepting crypto payments against the new tax laws

Published: Sep 22, 2022 06:04:11 PM IST

Colorado Revenue Department now allows submission of personal taxes through crypto assetsImage: Shutterstock

According to a new report, the Revenue Department of Colorado accepts crypto tokens for tax payments. Users can now pay their taxes through the Paypal Crypto hub. The option for tax payment is already available for the citizens on the state’s revenue department website. The payments will be immediately converted into fiat currencies for government usage. A third-party exchange facilitates this. Crypto assets can be used under the new taxation rules to pay personal taxes, but businesses are not included.

Crypto payments will be accepted by the Paypal Crypto hub with a usage fee of $1. Along with it, 1.83 percent of the transaction will be charged as payment. As the payment gets initiated, it is effective only for that day but may take up to three to five business days to get processed. Earlier this year, the state governor of Colorado also stated that the new taxation rules might include accepting crypto tokens as payment. At the Denver Startup Week, Jared Polis from the government’s side 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.”

Jared Polis has always been a tech supporter and mostly supported accepting crypto assets as a legitimate payment form in all government procedures. Even in the House of Representatives, Polis was active in the Congressional Blockchain Caucus as the founding member with active participation to support crypto tokens even in the legislation.

Many states in the US are also trying to adopt crypto payments under new tax laws. The major problems arise due to the decentralised nature of crypto assets. Ohio was the first state in the US to start accepting crypto tokens as payment, but the service had to be suspended a year later due to some legal issues. Similarly, New Hampshire is also attempting to accept crypto payments legally, but the bills cannot make it out of the legislation. Many other states are also considering the same thing currently.

Some cities have started accepting crypto payments before anyone else in the state. Denver has gotten one of the highest rankings for crypto hires in the year 2021. Accepting new tax laws seems easy for the citizens as the Paypal crypto hub is an intuitive and easy-to-use platform.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash

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