Colorado will accept cryptocurrency as a form of tax payment
COLORADO SPRINGS – Governor Polis recently announced that Colorado will become the first state to accept cryptocurrency for the payment of taxes and other fees.
It won’t affect you this tax season, but it will soon. Colorado will make history this summer, becoming the first state in our nation’s history to accept cryptocurrency as payment for taxes, with driver’s licenses and hunting licenses to follow.
But what impact will this have on the taxpayers of our state? Your taxes will always be the same in dollars, whether you pay in cash, card or cryptocurrency. It’s no different. The state simply offers another form of tax payment. I spoke with Ben Weiss, the CEO of CoinFlip, about how he thinks this will affect Colorado.
“I think they’re going to spark a wave of other states looking at this and Colorado is showing the nation that they’re pro tech, pro innovation and it’s also going to be good at raising revenue to fund the inflows and outflows of dollars from the state,” Weiss said.
“One of the arguments against BitCoin and cryptocurrency was, ‘Oh, well, you can’t pay taxes with it, so it’s not a currency. “Well, now we can and there is nothing more legitimate than a payment form in this country than paying your taxes and now you can.
Colorado will not hold any cryptocurrency as a third party will convert the cryptocurrency back into traditional dollars.
Governor Polis says the first step is to accept bitcoin and cryptocurrency as a tax payment this summer. It remains to be determined what other fees will accept cryptocurrency in the coming months.