blockchain technology; tax; fee; prohibition

Plain English Breakdown

The effective date is listed in the bill metadata as blank, though the text states it becomes effective on the general effective date.

SB1045: Rules for Blockchain Nodes at Home

This law stops cities, towns, and counties from taxing or banning people who run blockchain computer nodes in their homes.

What This Bill Does

• Prohibits local governments from charging taxes or fees on running a blockchain node in a residence, except for taxes on electricity.
• Declares that regulating home blockchain nodes is a matter of statewide concern and not subject to further regulation by cities, towns, or counties.
• Prevents cities, towns, and counties from prohibiting or restricting individuals from lawfully accessing computational power or running a node in their residence.
• Defines terms like 'blockchain technology', 'computational power', and 'running a node on blockchain technology'.
• Amends existing state laws for both cities/towns (Title 9) and counties (Title 11) to include these new rules.

Who It Names or Affects

• Individuals who run blockchain nodes or use computational power in their homes.
• Cities, towns, and counties that might want to tax, ban, or restrict this activity.

Terms To Know

Blockchain technology

A distributed ledger system protected by cryptography where data is immutable and auditable. It may be public or private and driven by tokenized economies or not, as defined in state law.

Running a node on blockchain technology

Providing computing power to validate or encrypt transactions in the blockchain system.

Computational power

The use of computer hardware and software to process data, run algorithms, or perform tasks requiring significant resources, including artificial intelligence, scientific research, and cloud computing.

Limits and Unknowns

• This law only applies to nodes running in a residence, not at businesses or other locations.
• Local governments can still tax the electricity used for these computers under existing state laws (Section 42-6012).
• The bill does not specify how local officials will enforce this new rule if they try to pass their own.

Official Summary Text

SB1045 - 572R - Senate Fact Sheet

Assigned to
GOV������������������������������������������������������������������������������������������������������������������� FOR
COMMITTEE

ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

FACT SHEET FOR
S.B. 1045

blockchain
technology; tax; fee; prohibition

Purpose

Declares the
imposition of a tax or fee on a person running a node on blockchain technology
in a residence to be a matter of statewide concern and preempts further
regulation by a city, town or county.

Background

Blockchain
technology
is a type of distributed ledger technology that uses a
distributed, decentralized, shared and replicated ledger, which may be public
or private, permissioned or permissionless, or driven by tokenized crypto
economies or tokenless. The data on the ledger is protected with cryptography,
is immutable and auditable and provides an uncensored truth (
A.R.S.
� 44-7061
). A city, town or county may not prohibit or restrict an
individual from running a node on blockchain technology in a residence.
Running
a node on blockchain technology
means providing computing power to validate
or encrypt transactions in blockchain technology. The regulation of the act of
running a node on blockchain technology in a residence is of statewide concern
and not subject to further regulation by a city, town or county (A.R.S. ��
9-500.42

and
11-269.22
).

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

Provisions

1.

Prohibits a city, town or county from imposing a tax or fee on any
person for running a node on blockchain technology in a residence, except for a
tax levied on electricity.

2.

Declares the regulation of the imposition of a tax or fee on a person
running a node on blockchain technology in a residence to be a matter of
statewide concern and not subject to further regulation by a city, town or
county.

3.

Defines
blockchain technology
.

4.

Makes conforming changes.

5.

Becomes effective on the general effective date.

Prepared by Senate Research

January 13, 2026

AN/KP/ci

Current Bill Text

SB1045 - 572R - S Ver

Senate Engrossed

blockchain
technology; tax; fee; prohibition

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SENATE BILL 1045

AN
ACT

amending sections 9-500.42 and 11-269.22,
arizona revised statutes; relating to local governments.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 9-500.42, Arizona Revised
Statutes, is amended to read:

START_STATUTE
9-500.42.

Prohibitions; blockchain technology; state preemption;
definitions

A. A city or town may not prohibit or otherwise
restrict an individual from lawfully accessing or using computational power or
running a node on blockchain technology in a residence.

b. A city or town may not impose a
tax or fee on any person for running a node on blockchain technology in a
residence.� This section does not apply to a tax levied pursuant to section 42-6012.

B.

c.
The
regulation of the act of lawfully accessing or using computational power or
running a node on blockchain technology in a residence
and the
imposition of a tax or fee on a person that runs a node on blockchain
technology in a residence
is of statewide concern and not subject to
further regulation by a city or town.

C.

d.
For
the purposes of this section:

1. "Blockchain technology"
has the same meaning prescribed in section 44-7061.

1.

2.
"Computational
power" means the use of computer hardware and software to process data,
run algorithms or perform tasks requiring significant computing resources,
including artificial intelligence, blockchain, scientific research and cloud
computing.

2.
3.
"Running
a node on blockchain technology" means providing computing power to
validate or encrypt transactions in blockchain technology as defined in section
44-7061.
END_STATUTE

Sec. 2. Section 11-269.22, Arizona Revised
Statutes, is amended to read:

START_STATUTE
11-269.22.

Prohibitions; blockchain technology; state preemption;
definitions

A. A county may not prohibit or otherwise restrict
an individual from lawfully accessing or using computational power or running a
node on blockchain technology in a residence.

b. A county may not impose a tax or
fee on any person for running a node on blockchain technology in a residence.�
This section does not apply to a tax levied pursuant to section 42-6012.

B.

c.
The
regulation of the act of lawfully accessing or using computational power or
running a node on blockchain technology in a residence
and the
imposition of a tax or fee on a person that runs a node on blockchain
technology in a residence
is of statewide concern and not subject to
further regulation by a county.

C.

d.
For
the purposes of this section:

1. "Blockchain technology"
has the same meaning prescribed in section 44-7061.

1.

2.
"Computational
power" means the use of computer hardware and software to process data,
run algorithms or perform tasks requiring significant computing resources,
including artificial intelligence, blockchain, scientific research and cloud
computing.

2.

3.
"Running
a node on blockchain technology" means providing computing power to
validate or encrypt transactions in blockchain technology as defined in section
44-7061.
END_STATUTE