Arizona Governor Vetoes Bill Banning Local Taxes, Fees on Crypto Mining
Arizona Governor Katie Hobbs vetoed legislation aimed at preventing local governments from taxing crypto mining in a letter published on April 12.
Veto aims to allow crypto mining taxes, fees
Hobbs’ letter indicates that she has vetoed a bill designated SB 1236. That bill aims to ensure that taxes and fees imposed on blockchain mining node operators are a state concern—and not a matter that can be decided at city, town- or county level.
Hobbs wrote that the bill “impedes local policymaking regarding an emerging and potentially energy-intensive economic activity.” She added that the bill does not connect with local stakeholders. As such, her veto could allow finer regulation of cryptomining.
Hobbs also wrote that the bill has an overly broad definition of blockchain technology
While it is unclear if any part of Arizona has attempted to enact crypto bans below the state level, localities in other states such as North Carolina have.
Meanwhile, states including Montana, Arkansas and Mississippi have taken steps to ensure that discriminatory anti-mining laws are completely eliminated.
Bill was originally sponsored by Rogers
SB 1236 was originally sponsored by Arizona Senator Wendy Rogers, a member of the Republican Party known for her attempts at crypto legislation.
Rogers recently sponsored another high-profile cryptocurrency bill numbered SB 1235. That bill, introduced in January, aims to recognize Bitcoin as legal tender in Arizona. The bill has not been vetoed, nor has it been passed into law, as of March 2023.
Rogers has also introduced two other relevant bills. One bill, SB 1239, aims to allow government agencies to accept crypto as payment. Another, SB 1240, aims to exempt cryptocurrency from property taxes. These bills are registered as having crossed over, meaning they have passed the Arizona Senate and can now be considered by the House.
Hobbs, a member of the Democratic Party, has also vetoed several other bills unrelated to cryptocurrency in recent weeks and months. It is unclear why she has refrained from vetoing Rogers’ other crypto bills, or whether she will do so in the future.
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