Reference to: House engrossed bill
Amendment drafted by: Leg Council
FLOOR AMENDMENT EXPLANATION
1. Limits the income tax deduction for personal casualty losses allowed by the U.S. Internal Revenue Code (U.S. IRC) to losses related to virtual currency and non-fungible tokens (NFTs).
2. Allows a taxpayer to deduct the amount of personal casualty losses related to virtual currency and NFTs in addition to, rather than in lieu of, the federally itemized deduction for personal casualty losses allowed by the U.S. IRC.
3. Allows a taxpayer who included a gain or loss on the sale of an NFT in their Arizona gross income to subtract gas fees from the taxpayer's Arizona gross income, as outlined.
4. Defines NFT as a non-fungible cryptographic asset on a blockchain that possesses unique identifiers or other metadata that distinguishes the asset from another token or asset in a manner that makes the asset irreplaceable and non-exchangeable for a similar token or asset.
5. Includes, in the definition of gas fee, the fee paid to the operator of a virtual network for the use of the network to facilitate the exchange of virtual currency or NFTs and the purchase or sale of NFTs.
6. Makes technical and conforming changes.
Second Regular Session H.B. 2204
LIVINGSTON FLOOR AMENDMENT
SENATE AMENDMENTS TO H.B. 2204
(Reference to House engrossed bill)
Page 5, line 36, strike "nonfungible" insert "non-fungible"
Line 40, strike the comma insert ":
(a)"
Between lines 42 and 43, insert:
"(b) "Non-fungible token" has the same meaning prescribed in section 43-1028.
(c) "Virtual currency" has the same meaning prescribed in section 43-1028."
Line 44, after "currency" insert "or non-fungible token"
Page 6, line 3, after "currency" insert "or non-fungible tokens"
Line 6, after "currency" insert "or a non-fungible token"
Lines 7 and 8, after "currency" insert "or non-fungible token"
Line 17, strike "or" insert a comma; after "sale" insert "or exchange"
Line 18, after "currency" insert "or a non-fungible token"
Between lines 18 and 19, insert:
"3. "Non-fungible token" means a non-fungible cryptographic asset on a blockchain that possesses unique identifiers or other metadata that distinguishes the asset from another token or asset in a manner that makes the asset irreplaceable and non-exchangeable for a similar token or asset."
Renumber to conform
Page 7, line 1, strike "lieu of" insert "addition to"
Line 3, strike the colon
Strike lines 4 through 6
Line 7, strike "2."
Page 7, strike line 9, insert "under section 165 of the internal revenue code. For the purposes of this subsection, "non-fungible token" and "virtual currency" have the same meanings prescribed in section 43-1028."
Amend title to conform