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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
Senate: FIN DP 4-3-0-0 | Third Read 16-11-3-0House: WM DP 5-3-0-0 |
SB
1043: state agencies; payments; cryptocurrency
NOW: state agencies; virtual currency payments
Sponsor: Senator Rogers, LD 7
Caucus & COW
Overview
Provides a means for a state agency to accept virtual currency as a method of payment.
History
Virtual currency is a digital representation of value, other than a representation of the U.S. dollar or a foreign currency, that functions as a unit of account, a store of value, and a medium of exchange. Some virtual currencies are convertible, which means that they have an equivalent value in real currency or act as a substitute for real currency (IRS).
Transaction privilege tax (TPT) is a gross receipts tax levied for the privilege of conducting business in Arizona and is imposed under 16 business classifications. Statute requires businesses to pay TPT to the Department of Revenue (DOR) by the 20th day of the following month after the tax is incurred. All TPT payments must be made to ADOR by bank draft, check, cashier's check, money order, cash or electronic funds (A.R.S. §§ 42-5008, 42-5014, 42-5018).
Individual and corporate income tax is levied on taxable income. Income tax may be paid in installments or in one payment, as prescribed. Corporate income tax can be paid by electronic funds transfer and individual income tax can be paid by check, cashier’s check, certified check, money order, U.S. currency or by the application of an overpayment from a prior tax return (A.R.S. §§ 43-1011, 43-1111).
Provisions
1. Allows a state agency to enter into an agreement with a virtual currency service provider to provide a method for accepting virtual currency as a payment method of, and to accept virtual currency as a method of payment for, fines, civil penalties, rent, rates, taxes, fees, charges, revenue, financial obligations and special assessments to pay any amount due to that agency or the state. (Sec. 1)
2. Requires the agreement to:
a. govern the terms and conditions on which virtual currency as a means of payment can be accepted or declined; and
b. provide the manner in and conditions on which a virtual currency service provider must pay the state by means of virtual currency or United States dollars. (Sec. 1)
3. Specifies 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. (Sec. 1)
4. Asserts the person that pays with virtual currency is liable for all portions of the payment 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. (Sec. 1)
5. Defines virtual currency, virtual currency service provider and stablecoin. (Sec. 1)
6. Allows DOR to enter into an agreement with a virtual currency service provider to accept virtual currency for remittances of TPT and municipal tax. (Sec. 2)
7. Allows remittances for income tax, interest and penalty to be paid to the DOR in the form of virtual currency if DOR enters into agreement with a virtual currency service provider. (Sec. 3)
8. Makes technical and conforming changes. (Sec. 3)
9. Becomes effective on January 1, 2027. (Sec. 4)
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13. Initials VP SB 1043
14. 3/25/2026 Page 0 Caucus & COW
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