Arizona senator introduces bill that exempts bitcoins and cryptos from taxes

In the latest development, Arizona Senator Wendy Rogers bring on the table another bill that aims to make Bitcoin and crypto exempt from property taxes. The bill introduced this time, dubbed SB 1128, follows a similar bill introduced by the Republican politician just two days ago that sought to make BTC legal tender.

The bill proposed by the senator under the title “Exemption for virtual currency” defined crypto assets as a “numerical representation of value, other than a representation of the United States dollar or a foreign currency that functions as a unit account, a store of value, or a medium of exchange.

Although the US Constitution prohibited each state to create its own legal tender, the chances of such bills becoming law are doubtful. Additionally, the bill must gain approval from the Arizona State Senate and House before Gov. Doug Ducey, a Republican, can sign it into law.

Rogers, who took office in early 2021, was named to the 3-member board Blockchain and Cryptocurrency Study Committee on December 31 of last year. The commission’s mandate will end on December 31, 2022, when it is supposed to submit its report.

A Look at Arizona’s Previous Attempt at a Bitcoin Tax Bill

An Arizona House of Representatives committee had recommended passage of a bill allowing state residents to pay their tax bills with bitcoin in March 2018. Lawmakers first considered the measure as early as January of the same year.

This, of course, did not happen.

However, in general, there is broad support in Arizona for making Bitcoin legal tender in the state. In fact, Bizman Don Huffines, a real estate developer and the current Texas gubernatorial candidate, argued that if elected, he would make bitcoin legal tender.

Only time will tell if there is enough support to circumvent the constitutional rule. Last September, El Salvador made bitcoin legal tender alongside the US dollar and remains the only country in the world to make BTC an official currency.