Arizona is moving closer to becoming one of the most crypto-friendly states in the US.
- Arizona lawmakers introduced SB 1044, which exempts cryptocurrency from property taxes and limits state and local taxation of blockchain activity.
- The bill defines virtual currency as a digital store of value and requires a constitutional amendment in the next election.
- Wendy Rogers, who filed the bill, said it supports Arizona's crypto-friendly push. The measure would head to voters in the next general election.
Arizona lawmakers introduced legislation this week that would exempt cryptocurrency from property taxes and restrict local taxation of blockchain activity.
The proposal, Senate Bill 1044 (SB 1044), was introduced during Arizona’s Fifty-seventh Legislature and outlines a framework to classify “virtual currency” as exempt from property taxation under state law.
What Is SB 1044?
SB 1044 seeks to amend the Arizona Revised Statutes by adding a new section that explicitly exempts virtual currency from taxation. The bill defines virtual currency as a digital representation of value that functions as a medium of exchange, unit of account, and store of value, excluding the U.S. dollar or foreign currencies. If enacted, cryptocurrency holdings would not be subject to property taxes at either the state or local level.
The legislation includes a conditional enactment clause, meaning it would only take effect if Arizona voters approve a constitutional amendment at the next general election. Lawmakers would need to pass a separate Senate Concurrent Resolution to place the proposal on the ballot.
Bitcoin was trading at $87,724, down 2.6% over the last 24 hours. On Stocktwits, the retail sentiment around Bitcoin remained in the ‘extremely bearish’ zone. Chatter around Bitcoin changed from ‘low’ to ‘normal’ levels over the past day.
Political Backing And What Comes Next
Arizona State Senator Wendy Rogers, who introduced SB 1044, amplified attention to the bill on Wednesday by re-sharing a post on X highlighting Arizona’s broader effort to limit crypto- and blockchain-related taxes.
If approved by lawmakers and voters, the measure would further position Arizona as a crypto-friendly state, potentially increasing its appeal to digital asset holders and blockchain firms seeking regulatory clarity. The bill now advances through the legislative process, where it will face committee review, potential amendments, and debate before any statewide vote.
Read also: Ethereum Dominates Tokenized Euro Market With 50% Share
For updates and corrections, email newsroom[at]stocktwits[dot]com<
