Arizona State Senator Wendy Rogers has introduced a set of legislative measures aimed at reshaping the state’s approach to digital asset taxation.
On Friday, Rogers prefiled three proposals with the Arizona Senate: SB 1044, SB 1045, and SCR 1003.
SB 1044 seeks to amend state statutes to exempt virtual currencies from taxation.
SB 1045 would prevent counties, cities, and towns from imposing taxes or fines on entities operating blockchain nodes.
SCR 1003 is a proposed constitutional amendment to redefine property tax rules to clearly exclude digital assets.
While SB 1045 could move forward through the legislature without voter intervention, the Crypto tax bill and constitutional resolution would need approval from Arizona voters in the November 2026 general election.
SCR 1003 would explicitly remove virtual currencies from property tax under the state constitution.
SB 1044 would reinforce this exemption at the statutory level.
SB 1045 focuses on protecting individuals or organizations running blockchain nodes from municipal taxation.
Arizona already stands out among U.S. states for having laws allowing the government to claim abandoned digital assets after three years.
These laws were designed to support a digital asset reserve within the state, though additional legislation has been proposed to expand Arizona’s capacity to invest in cryptocurrencies such as Bitcoin.
Rogers co-sponsored a Bitcoin reserve bill that Governor Katie Hobbs vetoed in May.
The senator criticized the veto and intends to refile the bill in the next legislative session.
Arizona remains one of the few states with a formal digital asset reserve, alongside New Hampshire and Texas.
Other states have explored different strategies regarding crypto taxation.
Ohio’s House of Representatives passed a measure to exempt cryptocurrency transactions under $200 from state capital gains taxes, though the bill has not advanced since June.
Meanwhile, New York Assemblymember Phil Steck introduced a 0.2% excise tax on digital asset transactions, including sales or transfers, but the legislation has remained in committee since August.
At the federal level, Wyoming Senator Cynthia Lummis proposed a draft bill in July that would exempt digital asset transactions and capital gains under $300.
Lummis has announced she will retire from the Senate in January 2027.
Arizona’s new proposals indicate the state is continuing its push to establish a favorable environment for cryptocurrency activity while balancing constitutional and statutory changes to taxation.