Assigned to FIN FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
FACT SHEET FOR S.B. 1062
legal tender; cryptocurrency
Purpose
Defines legal tender to include cryptocurrency and applies the definition to all Arizona
Revised Statutes.
Background
Statute defines legal tender as a medium of exchange, including specie, that is authorized
by the U.S. Constitution or U.S. Congress to pay debts, public charges, taxes and dues. Specie are
coins having precious metal content. Any gains or losses derived from the exchange of one kind
of legal tender for another is exempt from individual and corporate state income tax (A.R.S. §§ 6-
851; 43-1021; 43-1022; 43-1121; and 43-1122).
A trust company must apply to the Department of Insurance and Financial Institutions for
a certificate to be eligible to do trust business in Arizona. To obtain a certificate, a trust company
must have at least $500,000 of liquid capital which may consist of legal tender (A.R.S. §§ 6-851
and 6-856).
If a video service provider occupies or uses a highway within a local government's
boundaries, the video service provider must pay a license fee to the local government. The license
fee must be paid to the local government in a check, draft or note or ACH transaction that is payable
in legal tender (A.R.S. § 9-1443).
If including cryptocurrency in the definition of legal tender results in an increase or
decrease in the state income tax exemption for gains and losses derived from the exchange of one
kind of legal tender for another, there may be a fiscal impact to the state General Fund.
Provisions
1. Defines legal tender as:
a) any medium of exchange that is authorized by the U.S. Constitution or U.S. Congress for
the payment of debts, public charges, taxes and dues;
b) specie which are coins having precious metal content; and
c) cryptocurrency which is any form of digital currency in which encryption techniques are
used to regulate the generation of units of currency and verify the transfer of monies,
including Bitcoin, XRP, Ethereum, Litecoin, Bitcoin Cash and digital currency issued by
a central bank. FACT SHEET
S.B. 1062
Page 2
2. Applies the definition of legal tender to all Arizona Revised Statutes, including:
a) the state income tax exemption of gains and losses derived from the exchange of legal
tender;
b) the requirement for a trust company to have at least $500,000 of liquid capital, which may
include legal tender; and
c) the video service provider license fee that may be paid by an ACH transaction payable in
legal tender.
3. Makes technical and conforming changes.
4. Becomes effective on the general effective date.
Prepared by Senate Research
January 23, 2025
MG/ci