SB1024

THE CONTEXT: 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.

WHAT THE BILL DID: The final vetoed version would allow 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, require 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, and 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.

WHY IT MATTERED: The practical reason for this bill was to give Arizonans and public officials a defined option for state agencies under state law. It would allow 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, and would also require 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, rather than leave the current rule unchanged.