Arizona Pushes Back on Crypto Taxes — Lawmakers Target Digital Asset Exemptions

[tradelikepro]

Bill barring cities or towns from taxing blockchain node activity: Source: Arizona legislature

Arizona State Senator Wendy Rogers has introduced a trio of proposals aimed at reshaping how the state treats digital assets under tax law. The measures include SB 1044, which would exempt virtual currencies from taxation, SB 1045, which would prohibit local governments from taxing or fining blockchain node operators, and SCR 1003, a constitutional amendment clarifying that digital assets are not subject to property tax.

While the node-protection bill could advance through the legislature alone, the broader tax exemption proposals would require voter approval in the November 2026 general election. If passed, Arizona would become one of the most crypto-permissive states in the U.S., explicitly shielding both digital asset holders and infrastructure operators from state and local taxation.