Arizona Legislature Advances Proposal to Exempt Cryptocurrency Property Tax

The Arizona Senate Finance Committee passed the SB 1044 bill and SCR 1003 joint resolution with a vote of 4 to 3. This series of proposals was introduced by Wendy Rogers and aims to exempt virtual currency from property tax. If the proposal is approved, SCR 1003 will allow voters to decide in November whether to amend the state constitution to formally establish this tax exemption policy.

The SB 1044 bill seeks to amend state law to define virtual currency, characterizing it as a digital representation that serves as a medium of exchange, unit of account, and store of value, and is not a dollar or foreign currency. Although Governor Katie Hobbs vetoed several cryptocurrency-related bills in 2025, including SB 1025, which aimed to establish a Bitcoin strategic reserve, and SB 1024, which allowed the use of cryptocurrency for tax payments, the current tax exemption proposal has now been referred to the Senate Rules Committee for further consideration.