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PHOENIX— Arizona lawmakers are advancing legislation that would exempt cryptocurrency from property taxes, pushing forward a dual-track effort that could cement statewide tax relief for digital assets if voters approve a constitutional amendment later this year, Decrypt reported.
The Senate Finance Committee voted 4–3 to advance Senate Bill 1044, which would exempt virtual currency from property taxation, along with Senate Concurrent Resolution 1003, a measure that would ask voters in November to enshrine the exemption in the state constitution. Both proposals now move to the Senate Rules Committee for further consideration.
If approved by lawmakers, S.C.R. 1003 would place a constitutional amendment on the ballot defining digital currency and prohibiting ad valorem property taxes on such assets. Meanwhile, S.B. 1044 would update Arizona statute to align with that policy, formally excluding “virtual currency” from taxable property and defining it as a digital representation of value used as a medium of exchange, unit of account, or store of value, excluding government-issued currencies.
The measures were introduced by Sen. Wendy Rogers (R-Flagstaff), who has led multiple pro-crypto initiatives in Arizona. Rogers backed similar property tax exemption legislation last year that cleared the Senate but stalled in the House, and has also sponsored proposals such as the “Arizona Strategic Bitcoin Reserve Act,” which would have permitted state funds to invest up to 10% in Bitcoin and other digital assets, Decrypt reported.