Arizona Governor Katie Hobbs has vetoed a bill that would have prevented authorities from imposing taxes.
The taxes would be exempt for individuals and businesses running blockchain nodes. Arizona Bill 1236, which aimed to reduce or eliminate regulation and taxation of node operators at the state level, was vetoed on Hobbs’ 100th day in office.
The bill was designed to make state authorities the only entities that can impose regulations and taxes on individuals and businesses running blockchain nodes.
The Senate version of the bill stated that “a city or town may not impose a tax or fee on any person or entity for running a node on blockchain technology in a residence”. The same restrictions for cities and towns on node operators would have also applied to counties under the bill.
Some Arizona lawmakers have introduced legislation aimed at making the state a pro-crypto regulatory environment for both companies and individuals.
State Senator Wendy Rogers proposed making Bitcoin acceptable as legal tender in Arizona and joined with other lawmakers in a resolution that would make crypto a tax-exempt property under the state’s constitution.
This decision is significant for the crypto community in Arizona, as it shows that there are differing opinions on the regulation and taxation of blockchain nodes at the state and local levels.
Supporters of the veto argue that local authorities should be able to impose taxes on node operators, while opponents believe that state authorities should be the only ones with regulatory power over blockchain technology.
Governor Hobbs’ decision also comes at a time when other states are embracing crypto in various ways. For example, the governor of Colorado recently announced that he expects the state to accept tax payments in crypto by this summer.
Other states, such as Wyoming and Texas, have also been working to create pro-crypto regulatory environment.
Arizona Blockchain Bill
Overall, the regulation and taxation of blockchain technology remains a complex and contentious issue in the United States.
The decision by Governor Hobbs to veto Arizona Bill 1236 highlights the ongoing debate between state and local authorities over the control and oversight of blockchain nodes.
As the use of blockchain technology continues to grow, it is likely that more states will grapple with these issues and attempt to strike a balance between regulation and innovation.