property tax; exemption; virtual currency

Plain English Breakdown

The bill summary and text do not provide specific details on the fiscal impact of the exemption.

Property Tax Exemption for Virtual Currency

This bill would exempt virtual currency from property taxes if voters approve a constitutional amendment.

What This Bill Does

• Exempts virtual currency from property taxation in Arizona.
• Defines virtual currency as a digital representation of value that functions as a medium of exchange, unit of account and store of value other than a representation of the U.S. dollar or foreign currency.
• Requires voter approval of S.C.R. 1003 before the exemption takes effect.

Who It Names or Affects

• People who own virtual currency in Arizona.
• The state government and local governments that collect property taxes.

Terms To Know

Virtual Currency

A digital representation of value that functions as a medium of exchange, unit of account and store of value other than a representation of the U.S. dollar or foreign currency.

Property Tax

A tax on property that people and businesses own.

Limits and Unknowns

• The bill will only take effect if voters approve S.C.R. 1003.
• There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Official Summary Text

SB1044 - 572R - Senate Fact Sheet

Assigned to
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PASSED BY COMMITTEE

ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

AMENDED

FACT SHEET FOR
S.B. 1044

property tax;
exemption; virtual currency

Purpose

Conditional on the voter approval of S.C.R. 1003,

exempts virtual currency from property tax.

Background

All property in Arizona is subject to taxation with certain exemptions
outlined in the Arizona Constitution and prescribed by statute (
A.R.S.
� 42-11002
). According to the U.S. Internal Revenue Service,
virtual currency
is a digital
representation of value that functions as a medium of exchange, a unit of
account or a store of value which may be used as payment for goods or services
or held for investment purposes. Virtual currency that has an equivalent value
in real currency or acts as a substitute for real currency is referred to as
convertible virtual currency
. For federal tax
purposes, virtual currency is treated as property and the general tax
principles that apply to property transactions apply to virtual currency
transactions (
U.S. IRS
Notice 2014-21
).

There is no anticipated fiscal impact
to the state General Fund associated with this legislation.

Provisions

1.

Exempts
virtual currency from property taxation.

2.

Defines

virtual currency
as a digital representation of value that functions as
a:

a)

medium of exchange;

b)

unit of account; and

c)

store of value other than a representation of the U.S. dollar or a
foreign currency.

3.

Conditions
the enactment of this legislation on the enactment of S.C.R. 1003,
Fifty-Seventh Legislature, Second Regular Session, by a vote of the people at
the next general election.

4.

Becomes effective on the general effective date or later, subject to the
provisions of the conditional enactment.

Amendments
Adopted by Committee

�

Inserts S.C.R. 1003 in the blank space provided for that purpose.

Senate
Action

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Prepared by Senate Research

January 27, 2026

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Current Bill Text

SB1044 - 572R - S Ver

Senate Engrossed

property tax;
exemption; virtual currency

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SENATE BILL 1044

AN
ACT

amending title 42, chapter 11, article 3,
Arizona Revised Statutes, by adding section 42-11134; relating to
property tax exemptions.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section
1.
1. Title
42, chapter 11, article 3, Arizona Revised Statutes, is amended by adding
section 42-11134, to read:

START_STATUTE
42-11134.

Exemption for virtual currency; definition

A. Virtual
currency is exempt from taxation.

B. For the purposes of this section,
"virtual currency" means 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.
END_STATUTE

Sec.
2.
2.
Conditional
enactment

This act does not become effective
unless the Constitution of Arizona is amended by a vote of the people at the
next general election by passage of Senate Concurrent Resolution
1003, fifty-seventh legislature, second regular session,
relating to property tax exemptions.