Should the bill pass the legislature, Arizona voters will decide whether the virtual currency is tax-exempt as part of a November 2024 ballot measure.
Arizona’s state Senate is considering a bill to let voters decide whether to waive the income tax and property taxes.
In a bill introduced in the first session of the Arizona State Senate in 2023, Senators Wendy Rogers, Sonny Borrelli, and Justine Wadsack proposed that Arizona residents decide to amend the state’s property tax laws.
If the measure passes the legislature, voters could choose in November 2024 to make virtual currencies — especially tokens that are not “representative of the U.S. dollar or foreign currency” — tax-free.
Under Arizona law, all federal, state, local, and municipal assets are taxable, such as public debt, most family assets, and certain “stocks of raw or finished goods, parts not assemblies and -work in progress or finished product”. Data from the Arizona Secretary of State shows that there are more than 4 million registered voters in the November 2022 general election, and the state is heavily Republican.
The bill, SCR 1007, received two readings under the state Senate schedule on January 19 and January 23. In previous sessions, lawmakers tried to promote crypto and tax laws, such as the 2018 bill that allows residents to transfer tax money to crypto before Governor Doug Ducey vetoed the bill. Rogers also introduced a bill similar to SCR 1007 in the second Senate session of 2022.
However, the proposed law will face a different political face than in 2018 or even 2022, with Rogers, Borrelli, and Wadsack – all Republicans – denying or rejecting the fair and proper election of some federal and state legislators. Democrat Katie Hobbs narrowly defeated Republican Kari Lake to become governor of Arizona in the 2022 midterm elections.
At the federal level, the sale or purchase of cryptocurrency is often subject to income tax in the United States. Legislators from various US states have proposed various policies related to crypto and taxes, including Colorado Governor Jared Polis allowing residents to pay taxes on crypto in Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming 0% income tax for potential investors.
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