Can you use cryptocurrency to pay your state taxes? Colorado State plans to make that possible.
Jared Polis, Colorado governor, hopes to see his residents paying state taxes using digital coins one day.
Keep in mind that Polis has been a crypto enthusiast for a long, being the first aspirant politician to accept BTC donations in the 2014 campaign. The leader spoke recently at a CoinDesk 2021 Consensus event. During the occasion, the governor stated that he plans to make Colorado the first state to allow citizens to pay taxes in multiple cryptocurrencies.
He also highlighted Colorado’s involvement in technological advancements, declaring that the state is and it will always be the hub for Blockchain modernization in the US. That would attract increased investments, innovators, and the best jobs in infrastructure, individual data safety in the public and private sector, and digital identity.
However, the governor did not provide details on how to make his dreams a reality. At the moment, he stated his plans to talk with Mark Ferrandino, the Revenue Director, on the possibility of paying taxes using virtual coins.
Although there is no US State accepting crypto tax deals now, the notion is not new. In 2018, Ohio allowed its residents to use Bitcoin to pay tax. They made that possible using a third-party transaction platform, BitPay.
However, individual taxpayers could not utilize the service since it was available for business owners only. Moreover, the program did not last that long. In 2019, Robert Sprague, Ohio treasurer, suspended the BTC activities for legalities purposes. At the moment, no one knows whether the services will resurface again in the future for residents to enjoy paying their taxes with crypto.
Remember, multiple states have considered such programs but never implemented them. The absence of state laws to support the move remains the main obstacle.
As much as you cannot use crypto to pay taxes currently, you can use your digital coins for various purchases. Renowned brands such as AT&A, Overstock, and Microsoft allow their client to make crypto payments.
What do you think about using digital coins to pay your state taxes? Can the program succeed? You can comment below.