Arizona State Senator Wendy Rogers has proposed two bills and a resolution in an effort to change the state’s laws on taxing digital assets.
In a bill filed with the Arizona Senate on Friday, Rogers proposed changing state laws to exempt virtual currency from taxation (SB 1044), prohibiting counties, cities and towns from taxing or fining entities operating blockchain nodes (SB 1045), and changing the state constitution’s definition of property taxes to clarify rules on digital assets (SCR 1003).
The blockchain node bill could pass the state legislature, but the crypto tax bill and its resolution would require a vote from Arizona voters in the next general election, in November 2026.
SCR 1003 would amend the Arizona Constitution to specifically exclude virtual currency from property taxes, while SB 1044 would add similar language to state statutes. SB 1045 would prohibit cities and counties in the state from imposing “a tax or fee on a person who operates a node on blockchain technology.”
Arizona is one of the few US states with a law allowing the government to claim ownership of digital assets abandoned for at least three years. The law was part of efforts by crypto advocates to establish a digital asset reserve in Arizona, but there are other proposals aimed at giving the state more power to invest in cryptocurrencies like Bitcoin. 
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Rogers was a co-sponsor of a Bitcoin reserve bill that Arizona Governor Katie Hobbs vetoed in May. The senator condemned the move and said she would refile the bill in the next session. Cointelegraph reached out to Rogers for comment but did not receive a response at the time of publication.
US states pass crypto reserve bills and different digital asset policies
Arizona remains one of the few US states with legislation establishing a digital asset reserve, along with New Hampshire and Texas. Although some lawmakers in other states have attempted to rally support for similar bills, many are suggesting a different approach to taxing digital assets.
For example, the Ohio House of Representatives passed a bill that could exempt crypto transactions under $200 from the state’s capital gains tax. The legislation does not appear to have progressed since June.
New York Assembly Member Phil Steck proposed adding a 0.2% excise tax on “digital asset transactions, including the sale or transfer of digital assets” for state residents. The bill was referred to the Ways and Means Committee and does not appear to have moved forward since August.
At the federal level, Wyoming Senator Cynthia Lummis submitted a bill in July proposing a de minimis exemption for digital asset transactions and capital gains of $300 or less. Lummis announced Friday that she will retire from the U.S. Senate in January 2027.
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