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Senate Engrossed
state agencies; payments; cryptocurrency |
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State of Arizona Senate Fifty-seventh Legislature Second Regular Session 2026
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SENATE BILL 1043 |
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AN ACT
amending title 35, chapter 1, article 3, Arizona Revised Statutes, by adding section 35-156; amending sections 42-5018 and 43-505, Arizona Revised Statutes; relating to the control of receipts and expenditures.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 35, chapter 1, article 3, Arizona Revised Statutes, is amended by adding section 35-156, to read:
35-156. Method of payment; virtual currency; agreement; definitions
A. A state agency may enter into an agreement with a virtual currency service provider to provide a method to accept virtual currency as a payment method of fines, civil penalties or other penalties, rent, rates, taxes, fees, charges, revenue, financial obligations and special assessments to pay any amount due to that agency or this state.
B. The agreement shall:
1. Govern the terms and conditions on which virtual currency as a means of payment can be accepted or declined.
2. Provide the manner in and conditions on which a virtual currency service provider shall pay this state by means of virtual currency or united states dollars pursuant to the agreement.
C. A state agency that has entered into an agreement with a virtual currency service provider as provided by this section may accept virtual currency as a method of payment for fines, civil penalties or other penalties, rent, rates, taxes, fees, charges, revenue, financial obligations and special assessments to pay any amount due to that agency or this state.
D. A state agency may pay any service fees specified in the agreement for the virtual currency transaction or may require a person that pays with virtual currency to pay the service fees associated with the virtual currency transaction.
E. A person that pays with virtual currency is liable for the payment and all interest and penalties until the state agency has received final and unconditional payment of the full amount due from the virtual currency service provider for the virtual currency transaction.
F. For the purposes of this section:
1. "VIRTUAL CURRENCY" MEANS A DIGITAL REPRESENTATION OF VALUE THAT FUNCTIONS AS A MEDIUM OF EXCHANGE, A UNIT OF ACCOUNT AND A STORE OF VALUE, INCLUDING BITCOIN, ETHEREUM, XRP, LITECOIN AND BITCOIN CASH, AND INCLUDES STABLECOINS. VIRTUAL CURRENCY DOES NOT INCLUDE LEGAL TENDER ISSUED BY THE UNITED STATES OR A FOREIGN GOVERNMENT.
2. "VIRTUAL CURRENCY service provider" means a person or entity with demonstrated experience converting any form of virtual currency, including bitcoin, ethereum, xrp, litecoin and bitcoin cash, to legal tender.
3. "STABLECOIN" MEANS A PAYMENT STABLECOIN AS DEFINED IN THE GUIDING AND ESTABLISHING NATIONAL INNOVATION FOR U.S. STABLECOINS (GENIUS) ACT OF 2025 (P.L. 119-27) AND THAT IS ISSUED IN COMPLIANCE WITH ALL APPLICABLE FEDERAL LAWS GOVERNING SUCH ISSUANCE.
Sec. 2. Section 42-5018, Arizona Revised Statutes, is amended to read:
42-5018. Method of payment
a. All remittances of taxes imposed by this article shall be made by bank draft, check, cashier's check, money order, cash or electronic funds transfer to the department, which shall issue receipts therefor to the taxpayers, but no remittance other than cash shall be final discharge of liability for the tax levied by this article until it has been paid in cash to the department.
B. In addition to the methods described in subsection A of this section, the department may enter into an agreement pursuant to section 35-156 to accept virtual currency for remittances of taxes imposed by this article.
Sec. 3. Section 43-505, Arizona Revised Statutes, is amended to read:
43-505. Tax payments made to department; order of crediting
A. The tax and any interest and penalties shall be paid to the department. Remittances may be in the form of either:
1. A check payable to the department during such a time and under such regulations as the director may prescribe. If a check is not paid by the bank on which it is drawn, the taxpayer tendering the check shall remain is liable for the payment of the tax and all interest and penalties as if he had the check were not tendered the check.
2. If the department enters into an agreement pursuant to section 35-156, virtual currency.
B. The department shall credit payments against a taxpayer's unpaid tax liability before crediting payments against any interest or penalties.
Sec. 4. Effective date
This act is effective from and after December 31, 2026.