Cryptocurrency taxation remains one of the most complex tax regimes in the U.S.
Some of my friends tell me they often get confused when they have to file taxes on their digital asset holdings and consult dozens of tax consultants on the matter.
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First, filing taxes is quite a task for most Americans.
Second, crypto is still considered a novel asset and its ambiguous classification doesn't help either.
But a state in the United States is proposing measures that aim to simplify crypto taxes.
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Arizona's new bills could exempt cryptocurrency from property taxes
The battle over how Arizona taxes crypto is back. Once again, it’s threading its way through the Capitol by the slimmest of margins.
On a 4–3 vote, the Arizona Senate Finance Committee this week advanced two measures that would shield virtual currency from property taxation.
The Senate Bill 1044 aims to exempt cryptocurrency from property taxation, and the Senate Concurrent Resolution 1003 (S.C.R. 1003) proposes a constitutional amendment to formalize the exemption.
If S.C.R. 1003 ultimately clears the legislature, the question would land before voters this November. Arizonans would be asked whether the state constitution should explicitly define digital currency and prohibit its ad valorem taxation.
S.B. 1044, meanwhile, would update state law to mirror the exemption and define 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."
The bills, sponsored by Sen. Wendy Rogers (R-Ariz.), will now head to the Senate Rules Committee, where their fate will be decided.
For Rogers, the push is familiar territory. She carried similar property tax exemption legislation last year, winning approval in the Senate only to see it stall in the House. And it’s just one piece of a broader, long-running effort to position Arizona as one of the most crypto-friendly states in the country.
In recent years, Rogers has sponsored a slate of ambitious proposals, including those related to a strategic Bitcoin reserve and crypto taxes, but has met resistance from the governor’s office.
During the 2025 legislative session alone, Gov. Katie Hobbs vetoed four crypto bills related to: