Cryptocurrencies Have Become a Legal Means of Paying Taxes in Colorado

Cryptocurrencies Have Become a Legal Means of Paying Taxes in Colorado

AP Photo/David Zalubowski

Cryptocurrencies have become a legal means of paying state taxes in Colorado, following a pledge made by Gov. Jared Polis. The move was part of an initiative to adopt blockchain technology in the state.

Gov. Jared Polis delivered on a promise made earlier this year by announcing on Monday that Colorado residents can now pay state taxes in cryptocurrencies, Axios reports. These taxes include: individual income tax, business income tax, sales and use tax, withholding tax, severance tax and excise fuel tax are eligible, according to the governor's office.

The move is part of a broader Polis initiative to encourage the use of blockchain technology in the state. The initiative highlights Colorado’s cryptocurrency-friendliness, opening up more opportunities and facilitating adoption. Cryptocurrencies can benefit the US in creating economic development, qualitatively distinguishing the country from others in the world. However, for now, the US government sees cryptocurrencies more as a threat.

Taxpayers in Colorado opting to use direct debit are not subject to fees. Credit card payments impose a $0.75 fee, plus 2.25% of the net payment.

“Our budget is still in dollars, our expenditures are still in dollars, and, of course, we don’t want to take the speculative risk of holding crypto, so we will be having a transactional layer there,” Polis said. “It will be entering our systems as dollars. For consumer convenience, we want to accept payments in a wide variety of cryptocurrencies.”

© 2022, Eva Fox | Tesmanian. All rights reserved.


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About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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