The proposed bill SB1127 aims to prohibit cities, towns, and counties in Arizona from imposing taxes or fees on individuals or entities running a node on blockchain technology in their residences. The only exception to this prohibition is for taxes levied on electricity. The bill asserts that the regulation of such taxes and fees is a matter of statewide concern, thereby preempting local regulations.

In addition to the prohibition, the bill clarifies the definitions of "blockchain technology" and "running a node on blockchain technology," aligning them with existing statutes. It emphasizes that the regulation of running a node is not subject to further local regulation, reinforcing the state's authority over this matter. Overall, the bill seeks to create a more favorable environment for blockchain technology by limiting local government interference.

Statutes affected:
Introduced Version: 9-500.42, 11-269.22, 42-6012, 44-7061
Senate Engrossed Version: 9-500.42, 11-269.22, 42-6012, 44-7061