The Colorado Department of Revenue has allowed residents to make tax payments in cryptocurrencies.
Transactions are conducted through PayPal, which supports Bitcoin, Ethereum, Bitcoin Cash and Litecoin. Currently, only personal accounts can be used.
A flat fee of $1 applies, and 1.83% of the total payment is also charged.
In early 2022, the governor of the state Jared Polis unveiled the initiative. According to him, paying taxes in cryptocurrencies “will change outdated methods of doing business and government administration, making them more efficient”.
In February, California Democratic Senator Sydney Kamlager proposed allowing government services with cryptocurrency.
Earlier, similar initiatives did not gain support from lawmakers in Arizona and Illinois. The state of Ohio approved tax payments in Bitcoin, but later stopped accepting cryptocurrency payments due to low demand for the service.
In May 2021, authorities in Williston, North Dakota, allowed paying for utilities in Bitcoin.
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