Arizona Governor Katie Hobbs vetoed legislation that aims to prevent local governments from taxing crypto mining operations in a letter published on April 12.
Veto Aims to Allow Crypto Mining Taxes and Fees
Hobbs’ letter indicates that he has vetoed a bill dubbed SB 1236. That bill is intended to ensure that taxes and fees imposed on blockchain mining node operators are a state concern, not a matter that can be decided at the city, town or county level. .
Hobbs wrote that the bill “prevents local policy making regarding emerging and potentially energy-intensive economic activity.” He added that the bill fails to engage local stakeholders. As such, his veto could allow for finer regulation of crypto mining.
Hobbs also wrote that the bill has too broad a definition of blockchain technology.
Although it is unclear if any part of Arizona has attempted to impose crypto bans below the state level, localities in other states such as North Carolina have done so.
Meanwhile, states like Montana, Arkansas, and Mississippi have taken steps to ensure that discriminatory anti-mining laws are removed entirely.
Bill was originally sponsored by Rogers
SB 1236 was initially sponsored by Arizona Senator Wendy Rogers, a member of the Republican Party known for her attempts to legislate on cryptocurrency.
Rogers recently sponsored another high-profile cryptocurrency bill under the number SB 1235. That bill, introduced in January, aims to recognize Bitcoin as legal tender in Arizona. The bill has not been vetoed, nor has it been signed into law, as of March 2023.
Rogers has also introduced two other relevant bills. One bill, SB 1239, aims to allow state agencies to accept cryptocurrency as payment. Another, SB 1240, aims to exempt cryptocurrencies from property taxes. Those bills are registered as crossed, meaning they have passed the Arizona Senate and can now be considered by the House.
Hobbs, a member of the Democratic Party, has also vetoed several other non-cryptocurrency bills in recent weeks and months. It is unclear why he refrained from vetoing Roger’s other cryptocurrency bills, or if he will in the future.
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