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Colorado accepting #Bitcoin for tax payments ?? #crypto�Colorado's plan to accept crypto currency for state tax payments and other government fees is proof of crypto's wide acceptance as both an investment and. Currently, the only way to pay your Colorado state taxes in crypto is via PayPal's �Cryptocurrencies Hub,� which does not include stablecoins as. Colorado residents can now pay state taxes with cryptocurrencies using PayPal, according to the state's payment portal.