SB1128 is a bill that, effective January 1, 2025, authorizes state agencies in Arizona to enter into agreements with cryptocurrency service providers to accept cryptocurrency as a method of payment for various obligations due to the state, including fines, taxes, fees, and other assessments. The bill outlines the terms and conditions for such agreements, including the conversion of cryptocurrency to U.S. dollars, the payment of service fees, and the liability of the payer until the state receives full payment. It also adds cryptocurrency as an accepted method for remitting taxes to the Arizona Department of Revenue (ADOR), provided ADOR enters into an agreement with a cryptocurrency service provider.

The bill defines "cryptocurrency" and "cryptocurrency service provider" and specifies that the payer is liable for the payment, including any interest and penalties, until the state agency confirms the full amount due has been unconditionally paid by the cryptocurrency service provider. The bill makes technical changes to existing statutes to accommodate these provisions and becomes effective on January 1, 2025.

Statutes affected:
Introduced Version: 35-156, 42-5018, 43-505
Senate Engrossed Version: 35-156, 42-5018, 43-505