Arizona State Senator Wendy Rogers has proposed two bills and a resolution aimed at changing state laws regarding the taxation of digital assets.
In legislation introduced Friday to the Arizona Senate, Rogers proposed amending state laws to exempt virtual currency from taxation (SB 1044), prohibiting counties, cities, and towns from imposing taxes or financial penalties on entities operating blockchain nodes (SB 1045), and amending the definition of property tax in the state constitution to clarify regulations regarding digital assets (SCR 1003).
The blockchain node bill may pass the state legislature, but the cryptocurrency tax bill and resolution would require a vote by Arizona voters during the next general election, in November 2026.
SCR 1003 would amend Arizona’s constitution to explicitly exclude virtual currency from property taxes, while SB 1044 would add similar language to state statute. SB 1045 would prohibit cities, towns and counties in the state from imposing “a tax or fee on a person operating a blockchain-based node.”
Arizona is one of the few U.S. states with a law that allows the government to claim ownership of digital assets that have been abandoned for at least three years. The bill was part of an effort by cryptocurrency advocates to create a digital asset reserve in Arizona, but there are other proposals that would give the state more power to invest in cryptocurrencies such as Bitcoin (BTC).
Related: Up-to-date Hampshire Governor Signs Crypto Reserves Act
Rogers was one of the co-sponsors of the Bitcoin reserves bill vetoed in May by Arizona Governor Katie Hobbs. The senator condemned the move and announced that she would re-file the bill in the next session. Cointelegraph reached out to Rogers for comment but had not received a response at the time of publication.
US states adopt crypto reserve bills and various digital asset rules
Arizona remains one of the few US states, along with Up-to-date Hampshire and Texas, that have introduced a law establishing a digital asset reserve. While some lawmakers in other states have tried to drum up support for similar bills, many are also suggesting a different approach to taxing digital assets.
For example, the Ohio House of Representatives passed a bill that could exempt cryptocurrency transactions under $200 from state capital gains tax. There does not appear to have been much legislative progress since June.
Up-to-date York Assembly member Phil Steck has proposed adding a 0.2% excise tax on “digital asset transactions, including the sale or transfer of digital assets” for state residents. The bill was referred to the Ways and Means Committee and no progress appears to have been made since August.
At the federal level, Wyoming Sen. Cynthia Lummis introduced a bill in July proposing a de minimis exemption for digital asset transactions and capital gains of $300 or less. On Friday, Lummis announced she would retire from the U.S. Senate in January 2027.
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