The governor of Arizona vetoes a bill prohibiting local taxes and levies on crypto mining
The decision of Governor Katie Hobbs could result in mining regulations being decided at the county level.
In a letter dated April 12, Arizona Governor Katie Hobbs vetoed legislation intended to prevent local governments from taxing cryptocurrency mining operations.
The letter from Hobbs indicates that she has vetoed SB 1236. This bill seeks to ensure that taxes and levies imposed on blockchain mining node administrators are a concern of the state and not a local or county matter.
Hobbs wrote that the measure “prevents local policymaking concerning an emerging and potentially energy-intensive economic activity.” She added that the legislation does not involve local stakeholders. Therefore, her veto could enable more precise regulation of cryptocurrency mining.
Localities in other states, such as North Carolina, have attempted to institute crypto restrictions below the state level. It is unclear whether any portion of Arizona has attempted to do so.
In the meantime, states such as Montana, Arkansas, and Mississippi have taken measures to ensure that all discriminatory mining laws are eliminated.
SB 1236 was initially sponsored by Republican Arizona Senator Wendy Rogers, who is known for her crypto-related legislative efforts.
SB 1235 was recently sponsored by Rogers, who is a prominent cryptocurrency advocate. This measure, introduced in January, seeks to legalize Bitcoin in Arizona. The bill has neither been vetoed nor signed into law as of March 2023.
Rogers has introduced two additional pertinent measures. SB 1239 would permit state agencies to receive cryptocurrencies as payment. SB 1240 seeks to exempt cryptocurrencies from real estate taxes. These measures are recorded as having crossed over, indicating that they have passed the Arizona Senate and are now eligible for House consideration.
In recent weeks and months, Democratic party member Hobbs has also vetoed a number of measures unrelated to cryptocurrencies. It is unknown why she has not rejected Roger’s other crypto legislation, or if she will in the future.
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