Arizona Governor Rejects Bill Prohibiting Crypto Mining Taxes and Fees

Arizona Governor Protects Crypto Miners by Vetoing Proposed Taxes and Fees Ban

Arizona Governor Katie Hobbs has vetoed a bill that aimed to prevent local governments from imposing taxes and fees on cryptocurrency mining operations.

In a letter published on April 12, Hobbs explained that the legislation, designated SB 1236, would have prevented local policymaking regarding an emerging and potentially energy-intensive economic activity.

According to Hobbs, the bill failed to engage with local stakeholders and had an overly broad definition of blockchain technology. Her veto could allow for more precise regulation of crypto mining in Arizona.

SB 1236 was initially sponsored by Arizona Senator Wendy Rogers, a Republican known for her attempts at crypto legislation.

Rogers recently sponsored another high-profile cryptocurrency bill, SB 1235, which aims to recognize Bitcoin as a legal tender in Arizona.

Rogers has also introduced two other relevant bills, SB 1239 and SB 1240, which aim to allow state agencies to accept crypto as payment and exempt cryptocurrency from property taxes, respectively. These bills have passed Arizona’s Senate and can now be considered by the House.

It is unclear why Governor Hobbs refrained from vetoing Rogers’ other crypto bills or whether she will do so in the future. However, Hobbs, a member of the Democratic party, has vetoed several other bills unrelated to cryptocurrency in recent weeks and months.

While it is unclear whether any part of Arizona has attempted to impose crypto bans below the state level, localities in other states, such as North Carolina, have done so.

However, states including Montana, Arkansas, and Mississippi have taken steps toward ensuring that discriminatory laws against mining are eliminated entirely.


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