John Paul M. Joaquin Tech 01.25.2023 03:Jan AM EST

Arizona Lawmakers Want To Make Crypto Tax-Free Property

It's up to the people of Arizona if they want cryptocurrencies to be tax-exempt property.

The lawmakers in the Arizona State Senate are considering a bill that proposes to amend the state's constitution to make cryptocurrencies tax-exempt property and have voters determine if it should be so.

The Arizona lawmakers expect four million registered voters in the state to determine the bill's outcome, per Coin Telegraph.

Arizona Bill SCR 1007 Details

The bill in question, named SCR 1007, aims to have the four million registered voters in the state determine if the local government should amend Article IX. Section 2. of the Consitution of Arizona and make cryptocurrencies tax-exempt property.

Under US law at a federal level, the sales or purchases of cryptocurrency are generally subject to capital gains taxes. Unfortunately, under the current Arizona constitution, the only objects exempt from taxes are federal, state, county, and municipal property.

Public debts, various household goods, and certain "stocks of raw or finished materials, unassembled parts, works in process or finished products," are also exempted from taxes.

With cryptocurrencies not included in the list of tax-exempt properties, people in the state of Arizona that sell and/or purchase cryptocurrencies must pay the proper amount of capital gains tax.

As such, Senators Wendy Rogers, Sonny Borrelli, and Justine Wadsack proposed that the Arizona State Senate should let the people decide to amend Article IX. Section 2 of the state's constitution and make the sale and/or purchase of cryptocurrencies tax-free.

Should the bill pass legislation, the four million voters in Arizona could choose to make cryptocurrencies, specifically those that don't represent the country's dollar or a foreign currency, tax-exempt in Nov. 2024.

Senators Rogers, Borelli, and Wadsack are not the only ones in the country to propose making the trading of cryptocurrencies tax-free.

Lawmakers in different states already proposed similar bills in their respective states, with the states of Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washinton, and Wyoming offering 0% capital tax gains to potential investors.

Colorado Governor Jared Polis went so far as to propose that his state's residents can use cryptocurrency to pay taxes.

SCR 1007's Status In The Arizona State Senate

SCR 1007 already went through two readings as part of the Senate's calendar, specifically on Jan. 19 and Jan. 23, per openstates.org. However, it faces much opposition due to its authors' actions during and after the 2022 midterm elections on Nov. 8.

Rogers, Borrelli, and Wadsack either denied or questioned the fair and legitimate election of some state and federal lawmakers, such as Democrat Katie Hobbs, who narrowly defeated Republican Kari Lake to become Arizona's governor in the 2022 midterm elections.

SCR 1007 isn't the first bill in Arizona that involves cryptocurrencies. A 2018 bill previously sought to allow residents to submit tax payments using cryptocurrencies, but Arizona Gov. Doug Ducey, the state's governor at the time, vetoed it. Meanwhile, Rogers introduced a similar one to SCR 1007 in the second Senate session of 2022.