Arizona State Senator Wendy Rogers has proposed a set of three legislative measures aimed at altering cryptocurrency taxation rules. These proposals include laws for exempting cryptocurrencies from taxes, preventing local taxation or penalties on Blockchain node operators, and clarifying the constitutional definition of property tax concerning cryptocurrencies. Some of these measures could progress through the legislative process, while others require voter approval. The most significant timeline for these proposals is tied to the next general election in November 2026.
Cryptocurrency Tax Exemption Agenda in Arizona
Senator Rogers’ proposals presented to the Arizona Senate fall under three categories. These include SB 1044, which aims to exempt cryptocurrencies from taxes; SB 1045, which prevents counties, cities, and towns from imposing taxes or fees on entities running Blockchain nodes; and SCR 1003, which seeks to clarify the property tax scope in the state constitution concerning cryptocurrencies. While SB 1045 can proceed through the state legislative process, SB 1044 and SCR 1003 require a voter referendum.
The necessity for voter approval points to a roadmap with the critical date being November 2026. SCR 1003 aims to explicitly exclude cryptocurrencies from the property tax definition in the Arizona Constitution, while SB 1044 seeks to incorporate similar language into state law. SB 1045, on the other hand, intends to set a narrower, but direct framework by forbidding local governments from levying taxes or fees on individuals operating a Blockchain node.
Rogers’ initiative also highlights an existing regulation in Arizona regarding cryptocurrencies. A current law allows the state to claim ownership of cryptocurrencies that have been inactive and deemed abandoned for at least three years. This approach aligns with efforts by advocates supporting the establishment of a cryptocurrency reserve in the state, and alongside, there are proposals aiming to grant the state broader authority to invest in cryptocurrencies like Bitcoin 
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U.S. Nationwide Cryptocurrency Tax Debate
The Arizona example fits into a broader picture where states differ in their cryptocurrency taxation models. For instance, a bill in Ohio proposing a capital gains tax exemption for crypto transactions below 200 dollars passed the House of Representatives but has not progressed since June. Meanwhile, in New York, Phil Steck proposed a 0.2% consumption tax on cryptocurrency sales or transactions, though this proposal has seen no progress in the concerned committee since August.
At the federal level, discussions include a draft shared by Wyoming Senator Cynthia Lummis in July. It features a “de minimis” exemption for cryptocurrency transactions and capital gains of 300 dollars or less.
In Arizona, Rogers has previously been known for pushing a Bitcoin reserve agenda. She was the co-sponsor of a Bitcoin reserve bill vetoed by Arizona Governor Katie Hobbs in May and criticized the veto decision, planning to reintroduce it in the next session.
