According to a report by Axios Denver, Gov. Jared Polis announced that Colorado will become the first US state to accept Bitcoin as a method for paying taxes.
- EXPLOSIVE: Here’s what was uncovered in Hunter Biden’s iCloud Hack
- MAJOR PEER REVIEWED STUDY: Moderna Vaccine Increases Myocarditis Risk By 44 Times In Young Adults
- MUST READ: High Level International Bankers Simulate The Collapse Of Global Financial System
- BIG STORY: Wuhan Lab Isolated Monkeypox Strain In 2020
- EXPLOSIVE: Ukraine Biolabs Used Fever Carrying Mosquitoes To Spark Dengue Pandemic In Cuba
The first American state to accept bitcoin for tax payments is Colorado.
According to a report by Axios Denver, Gov. Jared Polis announced the adoption of the new payment mechanism on Monday during Denver Startup Week.
Individual income tax, business income tax, sales and use tax, withholding tax, severance tax, and excise fuel tax are all tax types that citizens can pay with bitcoin, according to the report.
In addition to the more well-known debit and credit cards, ACH debit and credit, and cash, the state government’s Department of Revenue also accepts “cryptocurrency” as payment.
Subscribe to GreatGameIndia
Users who wish to use their bitcoin holdings to pay Colorado state taxes must, however, use a PayPal account.
Colorado’s Department of Revenue explains that “only PayPal Personal accounts can pay using cryptocurrencies,” adding that the user must have the full amount of their invoice in a single cryptocurrency in their PayPal Cryptocurrencies Hub.
Cryptocurrency tax payers will pay 1.83% of their payment amount in fees in addition to an additional $1.
As they compete to entice workers and businesses in the new remote-first economy, U.S. states have raced for the prize of the most cryptocurrency-friendly jurisdiction.
However, it is challenging to justify paying taxes in bitcoin, particularly given Colorado’s predetermined partnership with PayPal. While the user would probably miss out on future financial gains from the bitcoin price by doing so, Colorado wouldn’t receive that purchasing power since the state doesn’t intend to store cryptocurrencies or BTC on its balance sheet.