Bill
Number: H.B. 2204
Livingston Floor Amendment
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.
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