Arizona Makes Bold Move: Bills Advance to Exempt Crypto from Property Taxes
Arizona just fired a shot across the bow of traditional finance—and it's loaded with digital currency.
The Regulatory Gambit
State legislators are pushing forward with a legislative package designed to carve out a massive tax haven for digital assets. The core proposal? Remove cryptocurrencies from the property tax roll entirely. Forget appraisals, forget annual levies on your Bitcoin holdings. If passed, your digital wallet gets a permanent pass from local tax collectors.
Why This Isn't Just Another Bill
This isn't tinkering at the edges. It's a foundational rewrite of how a state government classifies wealth. By severing the link between crypto and property tax, Arizona isn't just offering an incentive; it's building a neon-lit welcome sign for miners, investors, and blockchain firms fleeing less-friendly jurisdictions. It turns digital asset holdings from a taxable liability into a shielded store of value.
The Ripple Effect
The move pressures other states to clarify their own stances. Will they follow suit to attract capital, or dig in to protect traditional revenue streams? The legislation effectively dares the crypto industry to put its money where its mouth is and relocate to a desert oasis of regulatory clarity. Of course, the old-guard finance crowd is already scoffing—after all, what's a groundbreaking monetary policy shift without a few cynical whispers about 'speculative assets' dodging their fair share?
Arizona isn't waiting for federal permission. It's building the future of finance, one tax exemption at a time. The message to crypto natives is clear: come on in, the vault is open.
S.C.R. 1003 and S.B. 1044 await public vote in November
🇺🇸 ARIZONA JUST ADVANCED A BILL TO ELIMINATE PROPERTY TAXES ON BITCOIN
IT’S FINALLY HAPPENING pic.twitter.com/p5oNzqG1LM
— Vivek Sen (@Vivek4real_) January 27, 2026
The pair of bills is now headed to the Senate Rules Committee for approval. The S.B. 1004 legislation only becomes effective if the S.C.R. 1003 bill gets approved by voters at the next general election.
S.C.R. 1003 needs to clear all legislative steps and then public approval in November 2026 before it becomes effective. The bill’s approval WOULD place a constitutional amendment before Arizona voters, seeking to define virtual assets and prohibit ad valorem taxation of such assets.
The Senate Bill seeks to amend state law to reflect that prohibition. S.B. 1044 also exempts digital assets from taxation and defines cryptocurrencies as a digital representation of value functioning as a medium of exchange. The legislation also classifies digital assets as a unit of account and a store of value other than a representation of the U.S. dollar or a foreign currency.
Rogers has previously introduced similar tax exemption bills last year, which passed the Senate but failed to advance in the state House. The senator previously sponsored the Arizona Strategic bitcoin Reserve Act (Senate Bill 1025), which sought to allow state treasurers and retirement systems to allocate up to 10% of state funds into digital assets.
Arizona’s lawmakers have been trying to advance the state’s crypto policy in the legislature, but have repeatedly faced resistance from the Governor’s office. Arizona’s Governor Katie Hobbs has already vetoed four crypto-related bills during the previous year.
Governor Hobbs vetoes several crypto-related bills
Cryptopolitan previously reported that Hobbs rejected Roger’s Strategic Bitcoin Reserve Act (S.B. 1025) in May last year. She argued that retirement funds are not the place to trial untested assets like crypto.
“Imagine the ignorance of a politician to believe they can make investment decisions.”
–Anthony Pompliano, Head of Professional Capital Management.
Arizona’s governor also vetoed Senate Bill 1373, which aimed to establish a Digital Assets Strategic Reserve Fund to hold virtual assets obtained from seizures. She argued that the current volatility in the crypto industry doesn’t make a prudent fit for general fund dollars.
Hobbs also rejected Senate Bill 1024, which would allow state agencies to accept digital asset payments for fines, taxes, and fees. She stated that the legislation leaves the door open for too much risk.
Arizona’s governor also vetoed House Bill 2324 in July last year. The bill sought to create a Bitcoin and Digital Assets Reserve Fund holding digital assets seized in criminal investigations. She argued that the legislation disincentivizes local law enforcement from working with the state on crypto forfeiture by removing seized assets from local jurisdictions.
However, Hobbs approved House Bill 2749 and House Bill 2387 in May last year. The first legislation sought to modernize unclaimed property laws to allow digital assets to be held in their original FORM rather than liquidated. The other bill imposed strict fraud prevention, transaction caps, and compliance rules on crypto ATM operators.
House Commerce Committee Chairman Jeff Weninger said the legislation ensures Arizona doesn’t leave value sitting on the table. He also believes the bill will put the state in a position to lead the country in securing, managing, and benefiting from abandoned virtual currency.
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