Lawmakers in the Arizona state Senate are considering a bill aimed at letting voters decide whether virtual currencies are exempt from property taxes. In legislation to be introduced to the first session of the Arizona Senate in 2023, Senators Wendy Rogers, Sonny Borrelli and Justine Wadsack proposed giving Arizona residents the option to amend the state’s constitution regarding property taxes.
If the measure passes the legislature, voters could choose whether to make virtual currencies tax-free in the state in November 2024. Under Arizona’s constitution, all federal, state, county, and municipal property is tax-exempt, as are public debt, many household goods, and certain stocks of raw or finished goods, unassembled components, semi-finished or finished goods.
With more than 4 million registered voters for the November 2022 general election, the state leans slightly Republican, according to Arizona’s secretary of state.
Lawmakers have attempted to advance cryptocurrency and tax-related legislation in previous sessions, such as the 2018 bill allowing residents to file their taxes in crypto before Gov. Doug Ducey vetoed the bill.