Arizona legislators seek to make cryptocurrencies tax-exempt

Arizona senators are considering a bill aimed at letting voters decide whether cryptocurrencies are exempt from property taxes.

In a law introduced to the Arizona Senate in the first session in 2023, Senators Wendy Rogers, Sonny Borelli, and Justin Wadduk authorize Arizona residents to decide on amendments to the state constitution regarding property taxes. I suggested. If the bill passes Congress, voters will be able to choose whether or not to make virtual currencies (specifically not “things representing the US dollar”) tax-exempt in November 2024.

Under the Arizona Constitution, all federal, state, county, and local property is tax-exempt, including public debt, many household items, and certain “raw or finished goods, unassembled parts, work-in-progress or The same is true for inventory of finished products. Registered voters for the November 2022 general election surpassed her four million, according to Arizona Secretary of State data, and the state leaned slightly Republican.

Bill SCR 1007 passed two readings as part of the state Senate calendar on January 19 and January 23. Legislators in previous sessions have tried to advance legislation related to cryptocurrencies and taxes, such as his 2018 bill allowing residents. Governor Doug Ducey vetoed the bill before it filed its taxes in crypto. Rogers also introduced a bill similar to his SCR 1007 in the 2nd Senate in 2022.

But the proposed bill would face a different political climate than in 2018 or 2022, with Rogers, Borelli, and Wadsak — all Republicans — seeking just and just legitimacy for some state and federal legislators. denied or questioned the election. In the 2022 midterm elections, Democrat Katie Hobbs narrowly defeated Republican Kari Lake to become governor of Arizona.

Related: IRS summons users who fail to report cryptocurrency transactions and pay taxes

At the federal level, the sale or purchase of cryptocurrencies is typically subject to U.S. capital gains taxes. Legislators in various U.S. states have proposed various policies related to crypto and taxes, including the state of Colorado Governor Jared Polis will allow residents to pay their taxes in crypto, with Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming proposing 0%. Capital tax benefit to potential investors.