Arizona Governor Vetoes Bill Restricting Taxation on Residential Bitcoin Mining

• Arizona Governor vetoed a bill preventing taxes on Bitcoin mining.
• The bill aimed to permit Bitcoin as a legal tender and exempt mining taxes.
• Senate Bill 1235 seeks to add Bitcoin to the list of legal tender.

Recent reports state that Arizona Governor Katie Hobbs has vetoed legislation to prevent municipalities from imposing taxes on residential Bitcoin (BTC) mining operations. The Governor stated that the measure sought to limit the authority of local stakeholders, which was unacceptable.

In January, Arizona Senator Wendy Rogers introduced the bill that Governor Katie Hobbs recently vetoed. The bill’s passage would have permitted Bitcoin to operate as legal tender within the state and prohibited municipalities from imposing taxes on residential cryptocurrency mining. This was one of the potential avenues for Bitcoin to gain acceptance as a legal tender.

Senate Bill 1235 Embraces Digital Currencies

The proposed Senate Bill (SB)1235 legislation aims to amend Chapter 9 of the state’s legal tender policy by recognizing a wider range of currencies as acceptable forms of payment. Specifically, the bill seeks to add Bitcoin, among other digital currencies, to the list of legal tender. This move is a significant step towards modernizing the state’s monetary policy and embracing emerging digital currencies.

However, to prevent blockchain technology from being treated as a national issue, Hobbs vetoed Senate Bill 1236. This proposed law prevents local, state, and federal governments from “enforcing taxes or fees on any person or entity for running a node on blockchain technology in residence.”

By recognizing Bitcoin as a legal tender, the state would grant digital currency the same as traditional forms of money. This means businesses and individuals use Bitcoin to pay for goods and services, pay taxes, and other state obligations. This move would also bring more legitimacy to using digital currencies, which are becoming increasingly popular in today’s digital age.

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