Arizona Advances Crypto Tax Reform Legislation
Arizona lawmakers have prefiled two bills and one constitutional resolution aimed at reshaping the state's digital asset taxation framework. The legislation seeks to exempt VIRTUAL currencies from property taxes and restrict local governments from taxing blockchain node operations—a move positioning Arizona as a crypto-friendly jurisdiction.
Senate Bill 1044 specifically targets virtual currency taxation, proposing exemptions that could significantly reduce tax burdens for crypto holders. The bills require voter approval during the November 2026 general election, reflecting a deliberate approach to regulatory clarity.
This development occurs amidst growing national debate over crypto taxation policies, with Arizona emerging as a potential model for other states. The proposed changes address both immediate tax concerns and broader governance questions surrounding digital assets.
