Arizona Lawmaker Proposes Barring Taxes on Crypto and Blockchain
Arizona state Senator Wendy Rogers has introduced two bills and a resolution to change how the state taxes digital assets. SB 1044 seeks to exempt virtual currency from taxation under state statutes, while SB 1045 would prohibit local governments from taxing or fining people who operate blockchain nodes. SCR 1003 would amend Arizona’s constitution to exclude virtual currency from property taxes. While the blockchain node bill could progress through the legislature, the crypto tax exemption and constitutional amendment would require voter approval in the November 2026 general election. Arizona already has a law allowing the state to claim abandoned digital assets after three years, and other proposals are being considered to expand state investments in cryptocurrencies. Rogers previously co-sponsored a Bitcoin reserve bill that was vetoed by the governor and plans to refile it. Arizona joins New Hampshire and Texas in having digital asset reserve laws, as other states explore varying approaches to digital asset taxation, such as exemptions for small transactions in Ohio or proposed transaction taxes in New York. Federally, there are proposals for small transaction exemptions, such as the one from Senator Cynthia Lummis.
