ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature Second Regular Session
	Senate: FICO DP 4-3-0 | 3^rd Read 16-10-4-0 House: WM DP 5-4-0-1

---

SB 1092: income tax; currency transactions; effect

Sponsor: Senator Petersen, LD 14

Caucus & COW

Overview

Requires, beginning TY 2025, individual and corporate taxpayers to add any net capital losses or subtract any net capital gains derived from a foreign currency or virtual currency transaction to the Arizona gross income calculation.

History

There are additions and subtractions to Arizona gross income for individuals and corporations. For individuals, there are 16 additions and 29 subtractions. These additions and subtractions include benefits, reimbursements, depreciations and other net revenues. For corporations, there are 24 additions and 23 subtractions. These additions and subtractions include certain expenditures, depreciations, services and other net revenues (A.R.S. §§§§ 43-1021, 43-1022, 43-1121 and 43-1122).

Provisions

1. Requires, beginning TY 2025, an individual taxpayer to add any net capital loss included in Arizona gross income for the taxable year that is derived from a foreign currency or virtual currency transaction when computing Arizona adjusted gross income. (Sec. 1)

2. Requires, beginning TY 2025, an individual taxpayer to subtract any net capital gain included in Arizona gross income for the taxable year that is derived from a foreign currency or virtual currency transaction when computing Arizona adjusted gross income. (Sec. 2)

3. Requires, beginning TY 2025, a corporate taxpayer to add any net capital loss included in Arizona gross income for the taxable year that is derived from a foreign currency or virtual currency transaction when computing Arizona adjusted gross income. (Sec. 3)

4. Requires, beginning TY 2025, a corporate taxpayer to subtract any net capital gain included in Arizona gross income for the taxable year that is derived from a foreign currency or virtual currency transaction when computing Arizona adjusted gross income. (Sec. 4)

5. Defines foreign currency as the coin and paper money of a country other than the United States that is designated as legal tender, that circulates and that is customarily used and accepted as a medium of exchange in the country of issuance. (Sec. 1-4)

6.

7.

8. ---------- DOCUMENT FOOTER ---------

9.                   SB 1092

10. Initials VP/MG    Page 0 Caucus & COW

11.

12. ---------- DOCUMENT FOOTER ---------