Arizona Lawmakers Advance Bill to Exempt Crypto From Property Taxes

Arizona lawmakers are moving to exempt crypto from property taxes, advancing a pair of measures that could lock in statewide tax relief for digital assets, pending voter approval in November.

The Arizona Senate Finance Committee voted 4–3 to advance Senate Bill 1044, which would exempt virtual currency from property taxation, alongside Senate Concurrent Resolution 1003 (S.C.R. 1003), which proposes a constitutional amendment to formalize that exemption.

Senator Wendy Rogers (R-Flagstaff) introduced the bills last month, with the measures now headed to the Senate Rules Committee.

If enacted, S.C.R. 1003 would place a constitutional amendment before Arizona voters in November, asking whether to define digital currency and prohibit ad valorem taxation of such assets.

S.B. 1044 would amend state law to reflect that prohibition, exempting “virtual currency” from taxation and defining it as “a digital representation of value that functions as a medium of exchange, a unit of account and a store of value other than a representation of the United States dollar or a foreign currency.”

Rogers sponsored similar property tax exemption legislation last year that passed the Senate but did not advance in the state House.

She has been a vocal advocate for crypto adoption in Arizona, previously sponsoring the “Arizona Strategic Bitcoin Reserve Act” (Senate Bill 1025), which would have allowed state treasurers and retirement systems to allocate up to 10% of state funds into Bitcoin and other digital assets.

Arizona and crypto

Arizona’s crypto policy has advanced in the legislature but has repeatedly run into resistance from the Governor’s office.

Governor Katie Hobbs vetoed four Bitcoin-related bills during the 2025 legislative session.

Aside from rejecting Rogers’ Strategic Bitcoin Reserve Act, she blocked Senate Bill 1373, which would have established a Digital Assets Strategic Reserve Fund to hold crypto obtained through seizures, citing that “current volatility in cryptocurrency markets does not make a prudent fit for general fund dollars.”

Additionally, Hobbs vetoed Senate Bill 1024, which would have allowed Arizona agencies to accept crypto payments for fines, taxes, and fees, saying it “still leaves the door open for too much risk.”

She also rejected House Bill 2324, which sought to create a “Bitcoin and Digital Assets Reserve Fund” managed by the state treasurer and funded through crypto seized in criminal investigations, saying it “disincentivizes local law enforcement from working with the state on digital asset forfeiture by removing seized assets from local jurisdictions.”

However, last May Hobbs signed House Bill 2749, which modernized unclaimed property laws to allow crypto assets to be held in their original form rather than liquidated.

The only other crypto measure Hobbs signed was House Bill 2387, which imposed strict fraud prevention, transaction caps, and compliance rules on crypto ATM operators.