ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature First Regular Session
	Senate: FIN DP 4-3-0-0 | 3^rd Read 16-13-1-0 House: WM DP 6-4-0-0 | 3^rd Read 31-27-2-0

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SB 1236: blockchain technology; tax; fee; prohibition

Sponsor: Senator Rogers, LD 7

Transmitted to the Governor

Overview

Prohibits a county, city or town from imposing taxes or fees on blockchain technology nodes within a residence and specifies further regulation of blockchain technology nodes in a residence as a statewide concern.

History

Blockchain technology is defined in statute as distributed ledger technology that uses a distributed, decentralized, shared and replicated ledger, which may be public or private, permissioned or permissionless, or driven by tokenized crypto economics or token less. The data on the ledger is protected with cryptography, is immutable and auditable and provides an uncensored truth. (A.R.S. § 44-7061)

"Running a node on blockchain technology" means providing computing power to validate or encrypt transactions in blockchain technology. (A.R.S. § 9-500.42)

Provisions

1. Prohibits a county, city or town from imposing taxes or fees on any person or entity for running a node on blockchain technology in a residence, except for a municipal transaction privilege tax levied on the sale of electricity or a county use tax on electricity. (Sec. 1,2)

2. Specifies that the regulation of taxes and fees on a person or entity running a node on blockchain technology in a residence is of statewide concern and not subject to county, city or town regulation. (Sec. 1,2)

3. Defines blockchain technology. (Sec. 1,2)

4. Makes technical and conforming changes. (Sec. 1,2)

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8.                   SB 1236

9. Initials VP/AA        Page 0 Transmitted

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