Key takeaways:
- The veto power of Arizona’s governor was used to defeat legislation that would have generally barred local governments from taxing individuals and businesses who run blockchain nodes.
- The law sought to limit the ability of local and county governments to impose rules and fees on people and companies operating blockchain nodes.
Arizona’s governor, Katie Hobbs, exercised her veto power over legislation that would have generally prevented local governments from taxing people and companies who maintain blockchain nodes.
A bill that would have made Bitcoin legal cash in the state was submitted by Arizona Senator Wendy Rogers in January. It was one of the ideas put forth to turn the state’s favorite cryptocurrency into legal cash. The Senate version of the bill said any person or organization running a blockchain node in their home is exempt from any taxes or fees that a city or town may levy. The bill also stated:
“The imposition of a tax or fee on a person or entity running a node on blockchain technology in a residence is of statewide concern and not subject to further regulation by a city or town.”
Governor Hobbs vetoed Arizona Bill 1236, which was first introduced in January, on April 12. The law sought to amend blockchain-related statutes, notably decreasing or doing away with state-level oversight and taxes of node operators.
The legislation that would have exempted the town from taxation of domestic bitcoin mining activities has been vetoed, according to the most recent information from Arizona Governor Katie Hobbs. According to Hobbs, the law would provide local stakeholders with few options.
Hobbs defeated SB 1236, a bill that would have classified blockchain technology as a state issue. Hobbs sent a veto message, but the law nonetheless passed. The bill aims to limit how municipal policy is made.
The law would have subjected counties to the same limitations on node operators that apply to cities and towns. Legislators submitted the bill to Hobbs’ desk after it passed the Arizona Senate and House and received her veto on her 100th day in office.
A few Arizona lawmakers have proposed legislation to create a pro-crypto regulatory climate in the U.S. state for both businesses and individuals. State Senator Wendy Rogers advocated that Bitcoin be accepted by the government of Arizona as a legal tender and collaborated with other legislators on a resolution designating cryptocurrency as a tax-exempt asset under the state constitution.
