Arizona state Senator Wendy Rogers has introduced two bills and a resolution aimed at revising the state’s regulations on taxing digital assets.
In legislation prefiled with the Arizona Senate on Friday, Rogers proposed changes to state statutes to exempt virtual currency from taxation (SB 1044), prevent counties, cities, and towns from taxing or fining blockchain node operators (SB 1045), and amend the state constitution’s definition of property taxes to clarify regulations around digital assets (SCR 1003).
The blockchain node bill may progress through the state legislature, but the crypto tax bill and resolution would need to be voted on by Arizona voters during the next general election in November 2026.
SCR 1003 aims to amend Arizona’s constitution to explicitly exclude virtual currency from property tax, while SB 1044 intends to incorporate similar language into state statutes. SB 1045 would bar cities, towns, and counties from imposing “a tax or fee on a person that runs a node on blockchain technology.”
Arizona stands out among US states with existing legislation allowing the government to claim ownership of digital assets abandoned for at least three years. This law was part of initiatives by crypto advocates to create a digital asset reserve in Arizona, alongside other proposals granting the state increased authority to invest in cryptocurrencies like Bitcoin (BTC).
Related: New Hampshire governor signs crypto reserve bill into law
Rogers was among the co-sponsors of a Bitcoin reserve bill that was vetoed by Arizona Governor Katie Hobbs in May. The senator criticized the decision and indicated she would refile the bill in the next legislative session. Cointelegraph sought comment from Rogers but had not received a response by the time of publication.
US states adopt crypto reserve bills, differing digital asset policies
Arizona is one of the few US states to have a law establishing a digital asset reserve, joining New Hampshire and Texas. While some lawmakers in other states are attempting to garner support for similar bills, many are proposing alternative approaches to digital asset taxation.
For instance, Ohio’s House of Representatives passed a bill that could exempt crypto transactions under $200 from state capital gains taxes. This legislation has not progressed since June.
In New York, Assemblymember Phil Steck proposed a 0.2% excise tax on “digital asset transactions, including the sale or transfer of digital assets” for state residents. The bill has been referred to the ways and means committee and has not seen further advancement since August.
At the federal level, Wyoming Senator Cynthia Lummis introduced a draft bill in July proposing a de minimis exemption for digital asset transactions and capital gains of $300 or less. Lummis announced on Friday her intention to retire from the US Senate in January 2027.
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