Arizona to exempt crypto assets from property tax

During the first session of the Arizona State Senate seat for 2023, the trio of Senators Wendy Rogers, Sonny Borrelli, and Justin Wadsek considered taking the vote. Arizona On the possibility of drafting a bill adding virtual currency to the list of tax-exempt properties.

The draft (SCR 1007) defines cryptocurrency as “a digital representation of value that serves as a medium of exchange, Account Number and a store of value other than a U.S. dollar or foreign currency representation.”

Arizona’s Constitutional Position on Tax Exemptions

Based on the Arizona Constitution all federal, state, county, and Municipal propertyhousehold goods, and public liabilities, a limited number of “raw, finished materials, stocks of unassembled parts, work in process, or finished products are tax exempt.

While at the federal level, sales and purchases of cryptocurrencies in the United States are generally subject to federal capital gains tax.

Remember that on 19 and 23 January SCR 1007 Bill Arizona has had two readings as part of its state senate agenda, and there have been previous attempts to implement tax payments through crypto in 2018. Still, then-state governor Doug Ducey rejected it.

US State Efforts on Crypto Tax

Arizona isn’t the only US state working on a potential crypto tax exemption. Different US states are also coming up with different crypto and tax related policies.

Scott Conger, Mayor of Jackson, Tennessee, on July 16, 2021. announced The city plans to actively explore tax payments in Bitcoin (BTC).

Jared Polis, Governor of Colorado, Facilitated Use of cryptocurrency to pay income tax, cess tax, use tax, excise fuel tax, withholding tax, and sales tax.

Florida Governor Ron DeSantis, speaking during the signing of a financial literacy curriculum bill on March 23, 2022, revealed The state’s intention to start accepting tax payments in cryptocurrencies.

Other states such as Alaska, New Hampshire, Nevada, South Dakota, Texas, Washington, and Wyoming offer 0% capital gains tax to potential investors.

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