- Arizona lawmakers advanced bills to exempt digital assets from property tax, but changes activate only if voters approve in 2026.
- The measures cleared a 4–3 committee vote and head to Rules review, pairing statute changes with a required constitutional amendment.
- Governor Hobbs previously vetoed broader crypto bills, while narrower steps passed, keeping the tax debate with voters.
Arizona lawmakers advanced two crypto tax bills this week after a narrow committee vote at the State Capitol. The measures target property taxes on digital assets and would only take effect with voter approval. The effort involves Republican Senator Wendy Rogers and unfolds despite repeated vetoes from Governor Katie Hobbs during the 2025 session.
Committee Vote Sends Bills to Rules Review
The Arizona Senate Finance Committee passed Senate Bill 1044 on a 4–3 vote. Notably, the bill would exempt virtual currency from property taxation at the state level. However, it would only activate if voters approve a related constitutional amendment later this year.
At the same time, lawmakers advanced Senate Concurrent Resolution 1003. The resolution proposes amending the Arizona Constitution to exclude digital currency from the definition of taxable property. According to state law, any constitutional change must receive voter approval before becoming effective.
Both measures were sponsored by Senator Wendy Rogers. They now move to the Senate Rules Committee, which will review their constitutionality before further legislative action. This step determines whether the proposals can proceed through the chamber.
Voters May Decide Crypto Tax Policy in 2026
If SCR 1003 clears the legislature, the amendment would appear on the November 2026 general election ballot. Voters would then decide whether Arizona can apply ad valorem property taxes to digital currency. Meanwhile, SB 1044 would align state statutes with the amended constitution.
Arizona already applies a flat 2.5% personal income tax, along with transaction privilege and property taxes. However, property tax rates remain lower than in many states. The proposed bills would not change income tax treatment for crypto holdings.
Separately, Rogers introduced Senate Bill 1045. That proposal would block cities and counties from taxing or charging fees on blockchain node operations. Unlike the other measures, SB 1045 would not require voter approval.
Governor Hobbs Has Rejected Prior Crypto Bills
The renewed push follows repeated resistance from Governor Katie Hobbs. During the 2025 legislative session, Hobbs vetoed four crypto-related bills. These included proposals for a strategic Bitcoin reserve and crypto payments for taxes and fines.
However, Hobbs approved two narrower measures. One allows Arizona to hold unclaimed digital assets in their original form. Another tightened compliance rules for crypto ATM operators.
Arizona previously exempted crypto airdrops from income tax in 2022. The state also allows gas fees as deductible costs when calculating gains. The current proposals reopen the debate over how Arizona classifies and taxes digital assets.
