ARIZONA HOUSE OF REPRESENTATIVES Fifty-seventh Legislature First Regular Session
	Senate: FIN DP 4-3-0-0 | 3^rd Read 17-11-2-0 House: COM DP 6-4-0-0

---

SB 1024: state agencies; payments; cryptocurrency

Sponsor: Senator Rogers, LD 7

Caucus & COW

Overview

Provides a means for a state agency to accept cryptocurrency as a method of payment.

History

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 ADOR 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 cryptocurrency service provider to provide a method for accepting cryptocurrency as a payment method of, and to accept cryptocurrency 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 cryptocurrency as a means of payment can be accepted or declined; and

b) provide the manner in and conditions on which a cryptocurrency service provider must pay the state by means of cryptocurrency or United States dollars. (Sec. 1)

3. Specifies a state agency may pay any service fees specified in the agreement for the cryptocurrency transaction or may require a person that pays with cryptocurrency to pay the service fees associated with the cryptocurrency transaction. (Sec. 1)

4. Asserts the person that pays with cryptocurrency 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 cryptocurrency service provider for the cryptocurrency transaction. (Sec. 1)

5. Allows the Department of Revenue (DOR) to enter into an agreement with a cryptocurrency service provider to accept cryptocurrency for remittances of TPT and municipal tax. (Sec. 2)  

6. Allows remittances for a tax, interest and penalties to be paid to DOR in the form of cryptocurrency if DOR enters into agreement with a cryptocurrency service provider. (Sec. 3)

7. Defines cryptocurrency and cryptocurrency service provider. (Sec. 1)

8. Makes technical changes. (Sec. 3)

9. Contains a delayed effective date of January 1, 2026. (Sec. 4) 

10.

11.

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

13.                   SB 1024

14. Initials PB           Page 0 Caucus & COW

15.

16. ---------- DOCUMENT FOOTER ---------