Arizona residents may soon be able to hold onto more of their virtual currency as a bill could make it exempt from taxes.
The state of Arizona is proposing a change to its constitution that would make virtual currencies, such as Bitcoin (BTC), exempt from property taxes.
According to the official document, if the change is approved by voters and announced by the Governor, people in Arizona would not have to pay taxes on their cryptocurrencies.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
ICO vs IDO vs IEO: Which One's the Best? (Easily Explained)
The proposal also includes other types of property, like cemeteries and the property of veterans, that the state legislature may choose to make exempt from taxes as well. The change will be put to the vote in the next general election.
According to multiple sources, the bill went through two readings as part of the state Senate’s calendar, on Jan. 19 and Jan. 23. Lawmakers in previous sessions have attempted to move forward on legislation related to crypto and taxes.
The proposed legislation, known as SCR 1007, was introduced by Senators Wendy Rogers, Sonny Borrelli, and Justine Wadsack in the first regular session of the Arizona State Senate in 2023.
It aims to have Arizona residents decide on amending the state’s constitution in regard to property taxes. If the measure passes the legislature, voters could choose in November 2024 to make virtual currency tax-exempt. This tax exemption would cover, specifically, the tokens that are not “a representation of the United States dollar or a foreign currency.”
The proposed bill would add virtual currency to the list of property tax exemptions in the state. Right now, certain things like government property and certain types of goods used for non-commercial purposes are already not taxed in Arizona.
In other related news, the UK is offering tax exemptions to foreigners who buy through local brokers to attract global investors.
