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Arizona governor vetoes bill offering tax reprieve for miners

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Arizona Governor Katie Hobbs has vetoed a bill that exempts blockchain nodes from local taxes and fees.

SB 1236 was sponsored by Senator Wendy Rogers (R-Flagstaff) and sailed through the state House of Representatives’ Ways and Means Committee in March. It then went through the House Rules Committee and later the floor of the Senate before landing on Gov. Hobbs’ desk for her signature.

SB 1236 barred local authorities in Arizona from imposing taxes on the use of blockchain nodes or the technology used to mine digital assets. It would make Arizona “a crypto-friendly state,” Rogers told Senate.

However, Gov. Hobbs has shot the bill down.

“This bill broadly defines “blockchain technology” and prevents local policymaking concerning an emergent and potentially energy-intensive economic activity,” the Democrat stated in her veto letter.

Hobbs added that she intends to work with lawmakers to find solutions that support a thriving economy and boosts innovation. “This bill fails to meet the standard,” she stated.

While the governor has shot down Rogers’ SB 1236, there are still a few other digital asset-related bills sponsored by the controversial senator. The most prominent one is SB 1235, which aims to make BTC legal tender in Arizona. It was introduced in January but has yet to pass the Senate or the House. SB 1239 seeks to force state agencies to accept BTC as payment, while SB 1240 seeks to exempt digital assets from property taxes; both have passed the Senate but are yet to go through the House.

With the veto, Arizona has become the latest state caught up in a nationwide state-level campaign to regulate digital assets. Texas, New York, Mississippi, Arkansas, and several others have all been embroiled in regulatory action targeting some aspect of digital assets.

One of the most common targets is block reward mining. Just this year, Mississippi passed a law protecting miners in February; Texas welcomed miners and then eliminated tax breaks and subsidies in March; while Arkansas has a new bill to protect the miners.

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