Colorado Residents Can Now Use Crypto to Pay Taxes
Residents of Colorado can now pay state taxes with cryptocurrencies using PayPal, according to the state's payment portal. Payment takes place through the PayPal Cryptocurrencies Hub and incurs additional fees.
The plan to accept crypto for taxes was announced in February, with Gov. Jared Polis outlining plans to accept crypto by the end of summer during an appearance on CoinDesk TV.
The option allows residents to use crypto to pay for personal income tax, business income tax, severance tax and withholding tax, according to an Axios report that cites a speech given at Denver Startup Week.
Whilst PayPal lets users deposit, withdraw and hold a variety of cryptocurrencies, the settlement of its crypto checkout service is in U.S. dollars. There's also a service fee of $1.00 plus 1.83% of the payment amount.
Several other U.S. states, including Florida and Ohio, have tested accepting crypto for taxes, while in South America the inflation-hit capital of Argentina, Buenos Aires, said in April it will allow crypto payment for taxes.