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<p>Arizona lawmakers are back with a proposal that could remove state taxes on cryptocurrency altogether.</p>
<p>State Senator Wendy Rogers has <a href="https://www.azleg.gov/legtext/57leg/2R/bills/SB1044P.htm" target="_blank" rel="noopener noreferrer nofollow">introduced a set of bills</a> and a constitutional resolution that aim to change how Arizona treats digital assets, from everyday crypto transactions to blockchain infrastructure.</p>
<p>If approved, the move would place Arizona among the most crypto-friendly states in the U.S. when it comes to taxation.</p>
<p>Huge moves! Here’s what you should know.</p>
<h2 class="wp-block-heading" id="h-arizona-pushes-to-exempt-crypto-from-state-taxes">Arizona Pushes to Exempt Crypto From State Taxes</h2>
<p>The effort centers on SB 1044, a bill that would exempt virtual currency from taxation under Arizona law.</p>
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 <p>The proposal defines virtual currency as <em>“a digital representation of value that functions as a medium of exchange, a unit of account and a store of value other than a representation of the United States dollar or a foreign currency.”</em></p>
</blockquote>
<p>To lock in that change, Rogers also filed SCR 1003, a resolution that would amend Arizona’s constitution to explicitly exclude digital assets from property tax. Unlike regular legislation, this measure would need approval from voters in the November 2026 general election.</p>
<p>Together, the two measures aim to remove much of the tax burden tied to holding, using, or earning crypto at the state level.</p>
<h2 class="wp-block-heading" id="protection-for-blockchain-node-operators">Protection for Blockchain Node Operators</h2>
<p>A third proposal, SB 1045, focuses on blockchain infrastructure. The bill would prevent cities, counties, and towns from imposing <em>“a tax or fee on a person that runs a node on blockchain technology.”</em></p>
<p>This measure could move forward through the state legislature without a public vote, making it the most immediate of the three proposals.</p>
<p>For node operators and mining firms, local taxes and fees are often cited as a major cost factor. Removing them could make Arizona more attractive for companies deciding where to expand or set up operations.</p>
<h2 class="wp-block-heading" id="part-of-a-larger-crypto-policy-shift">Part of a Larger Crypto Policy Shift</h2>
<p>Arizona’s move comes as states across the U.S. test different approaches to crypto regulation and taxation. While Texas has pushed forward with a <a href="https://coinpedia.org/news/texas-bitcoin-reserve-strategy-becomes-reality-with-10m-investment/" target="_blank" rel="noopener noreferrer nofollow">strategic Bitcoin reserve</a>, other states like Ohio and New York have explored narrower tax changes.</p>
<p>At the same time, lawmakers in Washington have floated a bipartisan discussion draft aimed at <a href="https://horsford.house.gov/media/press-releases/reps-horsford-miller-unveil-discussion-draft-to-bring-tax-clarity-to-digital#:~:text=The%20Digital%20Asset%20Protection%2C%20Accountability,commodities%2C%20and%20other%20financial%20assets." target="_blank" rel="noopener noreferrer nofollow">aligning crypto taxes</a> with traditional financial assets, signaling growing momentum around modernizing digital asset tax rules at the federal level.</p>
<p>Rogers’ proposals stand out because they aim to eliminate state-level crypto taxes rather than adjust them.</p>
<p>The path ahead is still uncertain. A similar Bitcoin reserve bill backed by Rogers was vetoed earlier this year by <a href="https://statescoop.com/arizona-katie-hobbs-bitcoin-reserve/" target="_blank" rel="noopener noreferrer nofollow">Governor Katie Hobbs</a>, and voter approval remains a major hurdle.</p>
<p>Still, Arizona has now placed itself at the center of the growing debate over how digital assets should be taxed – and whether states should compete to attract the next wave of crypto infrastructure.</p>
<h2 class="wp-block-heading" id="h-faqs">FAQs</h2>
<div class="schema-faq wp-block-yoast-faq-block">
 <div class="schema-faq-section" id="faq-question-1766487529500">
  <strong>How would the proposals affect crypto holders in Arizona?</strong>
  <p>If approved, residents could hold, trade, or earn crypto without paying state taxes on their digital assets.</p>
 </div>
 <div class="schema-faq-section" id="faq-question-1766487558566">
  <strong><strong>When could these crypto tax changes take effect?</strong></strong>
  <p>Legislation could pass through the state, but the constitutional amendment requires voter approval in November 2026.</p>
 </div>
</div>

No More Crypto Tax for Arizona? New Bills Signal Big Change

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