Arizona lawmakers are advancing a package of bills that would change how the state treats bitcoin and other digital assets for tax and regulatory purposes.
The proposals include exemptions from certain state property and tax rules, plus protections aimed at people and businesses running blockchain nodes.
Proposed tax and property changes
Arizona lawmakers introduced SB 1044, which would update state statutes to remove digital assets from a taxable category.
They also introduced SCR 1003, a proposed constitutional amendment intended to clarify that virtual currency does not fall under Arizona property tax rules.
If SCR 1003 advances, it would require voter approval at the 2026 general election.
Node operator protections
A separate measure, SB 1045, would prohibit cities and counties from taxing or fining entities that operate blockchain nodes.
Supporters argue the bill is designed to prevent uneven local rules that could discourage participation in network infrastructure.
Existing state approach and wider context
Arizona already has a law allowing the state to claim digital assets deemed abandoned after three years, a policy lawmakers have linked to the idea of a digital asset reserve.
Other states are considering different approaches to digital asset taxation.
Ohio has weighed an exemption for small transactions under $200, while New York has studied an excise tax on digital transfers.
