Arizona Senator Wendy Rogers has proposed two bills and a resolution to change the state’s laws regarding the taxation of digital assets.
In bills pre-filed in the Arizona Senate last Friday, Rogers proposed amending state statutes to exempt virtual currencies from taxation (SB 1044), prohibiting counties, cities and towns from taxing or fining entities that operate blockchain nodes (SB 1045), and amending the state constitution’s property tax definition to clarify rules for digital assets (SCR 1003).
While the blockchain node bill could pass the state legislature, the cryptocurrency tax bill and resolution must be voted on by Arizona voters during the next general election in November 2026.
SCR 1003 amends the Arizona Constitution to specifically exclude virtual currencies from property taxes, while SB 1044 adds similar language to the state statute. SB 1045 prohibits cities, towns, and counties in the state from imposing “taxes or fees on persons operating nodes with blockchain technology.”
Arizona is one of the few states in the country with a law that allows the government to claim ownership of digital assets that have been abandoned for at least three years. The law was part of an effort by cryptocurrency advocates to secure digital asset reserves in Arizona, but there are other proposals that would give the state more power to invest in cryptocurrencies like Bitcoin (BTC).
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Rogers was one of the co-sponsors of the Bitcoin reserve bill that Arizona Governor Katie Hobbs vetoed last May. Senators condemned the move and said they would resubmit the bill in the next session. Cointelegraph reached out to Rogers for comment but did not receive a response at the time of publication.
US states adopt cryptocurrency reserve bills, various digital asset policies
Arizona remains one of the few U.S. states, along with New Hampshire and Texas, to have laws regulating digital asset holdings. While some lawmakers in other states have attempted to rally support for similar bills, many are proposing different approaches to taxing digital assets.
For example, the Ohio House of Representatives passed a bill that would exempt cryptocurrency transactions under $200 from the state’s capital gains tax. The bill appears to have made no progress since June.
New York State Assemblyman Phil Steck proposed adding a 0.2% excise tax for state residents on “digital asset transactions, including the sale or transfer of digital assets.” The bill has been referred to the Ways and Means Committee, but appears to have made no progress since August.
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At the federal level, Wyoming Senator Cynthia Lummis introduced a draft bill in July proposing a minimum exemption for digital asset transactions and capital gains of $300 or less. Lummis announced Friday that he will retire from the U.S. Senate in January 2027.
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