Lawmakers in the Arizona State Senate are considering a bill intended to let voters decide whether virtual currency is exempt from property taxes.
in legislation inserted At the first session of the Arizona State Senate in 2023, Senators Wendy Rogers, Sonny Borrelli, and Justine Wadsack proposed that Arizonans decide to amend the state constitution regarding property taxes. If the measure passes the legislature, voters could choose whether virtual currency, specifically not "a representation of the United States dollar," will be tax-exempt in the state in November 2024.
Under the Arizona constitution, all federal, state, county, and municipal property is exempt from tax, as are public debts, many household goods, and certain "stocks of raw or finished materials, unassembled parts, work in progress, or finished products". Data from the Arizona Secretary of State He suggested that there were more than 4 million registered voters in the November 2022 general election, and the state leaned slightly Republican.
The bill, SCR 1007, went through two readings as part of the state senate schedule on January 19 and 23. Lawmakers in previous sessions have tried to advance legislation related to cryptocurrency and taxes, such as a 2018 bill. allow residents to file tax payments in crypto, before Gov. Doug Ducey vetoed the bill. Rogers also introduced a bill similar to SCR 1007 in the 2022 second session of the Senate.
However, the proposed legislation would face a different political climate than it did in 2018 or even 2022, with Rogers, Borrelli and Wadsack, all Republicans, denying or questioning the fair and legitimate election of some state and federal legislators. Democrat Katie Hobbs narrowly defeated Republican Kari Lake to become governor of Arizona in the 2022 midterm elections.
Related: IRS to Summons Users Who Fail to Report and Pay Tax on Crypto Transactions
At the federal level, sales or purchases of cryptocurrency are generally subject to capital gains tax in the United States. Lawmakers in different US states have proposed various cryptocurrency and tax related policies, including Colorado Gov. Jared Polis allowing residents pay taxes in crypto and Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming, which offer 0% taxable capital gains to potential investors.
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