State Senator Wendy Rogers (R) has introduced multiple legislative measures aimed at reducing or eliminating state-level taxes on cryptocurrencies and blockchain activity.
Cointelegraph
Key components include:
SB 1044 Would exempt virtual currency (including Bitcoin and other digital assets) from state taxation.
Cointelegraph
SB 1045 Would prohibit local governments (cities, towns, counties) from imposing taxes or fees on entities that run blockchain nodes.
Cointelegraph
SCR 1003 A constitutional amendment resolution to explicitly exclude digital assets from Arizonaโs property tax definition. If approved by the legislature, it would go to voters in the November 2026 general election.
Cointelegraph
Under current law, virtual currency isnโt directly taxed as property, but income or gains from crypto can still be taxable under income tax provisions so these proposals would change how the state treats digital asset taxation and local levies.
azleg.gov
๐ณ๏ธ Legislative Process & Voter Approval
SB 1045 (local tax ban) might progress through the legislature on its own.
LegiScan
SB 1044 and the constitutional amendment (SCR 1003) are structured so that Arizona voters would ultimately decide whether to adopt the exemptions in 2026.
Cointelegraph
๐ Political and Policy Context
This effort reflects an ongoing trend among U.S. states to update tax and regulatory frameworks for digital assets and position themselves as crypto-friendly jurisdictions.
Crypto Economy
Arizona already has laws regarding digital assets and abandoned crypto, including provisions for state control of unclaimed digital property, and previously considered other crypto initiatives like a state Bitcoin reserve.
TradingView
Similar measures in other states, such as Ohio proposing exemptions for small crypto transactions or New York considering an excise tax, show that states differ widely in their approaches to crypto taxation."
