Lawmakers in the Arizona State Senate are considering a bill aimed at having voters decide whether virtual currency should be exempt from property taxation.
The legislation introduced in the first session of the Arizona State Senate in 2023 by Senators Wendy Rogers, Sonny Borrelli, and Justine Wadsack proposes having Arizona residents decide on amending the state’s constitution in regard to property taxes.
If the measure passes the legislature, voters could choose in November 2024 to make virtual currency, specifically tokens that are not “a representation of the United States dollar or a foreign currency”, tax-exempt.
Under Arizona’s constitution, all federal, state, county and municipal property is tax-exempt, as are public debts, many household goods, and certain “stocks of raw or finished materials, unassembled parts, works in process, or finished products”.
The bill, SCR 1007, went through two readings as part of the state Senate’s calendar, on Jan. 19 and Jan. 23. Lawmakers in previous sessions have attempted to move forward on legislation related to crypto and taxes, such as a 2018 bill allowing residents to submit tax payments in crypto, before then-Governor Doug Ducey vetoed the bill.
However, the proposed legislation would face a different political climate than that of 2018 or even 2022, with Rogers, Borrelli and Wadsack, all Republicans, having either denied or questioned the fair and legitimate election of some state and federal lawmakers.
Democrat Katie Hobbs narrowly defeated Republican Kari Lake to become the governor of Arizona in the 2022 midterm elections.
