Arizona lawmakers are pushing for a major shift that could eliminate state-level taxes on cryptocurrency entirely. State Senator Wendy Rogers has proposed an amendment aimed at making Bitcoin and other cryptocurrencies tax-exempt within the state.
The goal of these bills is to establish Arizona as a premier "Crypto Hub." By removing taxes, lawmakers hope to encourage the use of crypto for daily transactions and attract tech investors to the state. Arizona has already taken steps in this direction, such as making "Airdrops" tax-free and allowing deductions for "Gas Fees."
However, challenges remain. While these bills signal a big change, they must still be signed by Governor Katie Hobbs, who has vetoed similar crypto-friendly legislation in the past. Additionally, even if state taxes are removed, residents would still be subject to Federal IRS taxes.
