Arizona lawmakers seek to make crypto tax-exempt property.

Lawmakers in the Arizona State Senate are considering a bill aimed at forcing voters to decide whether to exempt virtual currency from property taxes.

In legislation introduced At the first session of the Arizona State Senate in 2023, Senators Wendy Rogers, Sonny Borrelli, and Justin Widsek proposed that Arizona residents decide to amend the state constitution regarding property taxes. If the measure passes the Legislature, voters could choose whether virtual currency — specifically not “representing the U.S. dollar” — would be tax-exempt in the state in November 2024.

Under the Arizona Constitution, all federal, state, county and municipal property are exempt from taxes, as are public debt, many household goods, and certain “raw or finished goods, unassembled parts, work in process or finished goods.” Products”. Data from the Arizona Secretary of State Proposed That there were more than 4 million registered voters in the November 2022 general election, with the state leaning slightly Republican.

The bill, SCR 1007, went through two readings on Jan. 19 and Jan. 23 as part of the state Senate calendar. In previous sessions, lawmakers tried to move forward on crypto and tax-related legislation, such as the 2018 bill. Allowing residents to submit tax payments In crypto, Gov. Doug Ducey vetoed the bill earlier. Rogers also introduced a bill similar to SCR 1007 in the 2022 second Senate session.

However, the proposed legislation would face a different political environment than in 2018 or even 2022, in which Rogers, Borrelli, and Woodsack — all Republicans — have either challenged the fair and legitimate elections of some state and federal legislators. Have denied or questioned it. Democrat Katie Hobbs defeated Republican Kerry Lake in the 2022 midterm elections to become governor of Arizona.

Related: The IRS should summon users who don’t report and don’t pay taxes on crypto transactions

At the federal level, the sale or purchase of cryptocurrency is generally subject to capital gains tax in the United States. Legislators in various US states have proposed different crypto and tax policies, with Colorado Governor Jared Polis allowing residents. Paying taxes in crypto And Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming offer 0% capital gains tax to potential investors.