July 6, 2022, 10:19 PM
The value of cryptocurrency and non-fungible tokens that are sent for free to digital wallets won’t be subject to Arizona income tax under a law signed by Gov. Doug Ducey on Wednesday.
The changes take aim at “airdrops,” a promotional tool to distribute tokens to customers at no cost.
- The measure (H.B. 2204) treats airdropped assets like stocks by considering them as gifts. Taxes would still apply to gains made by selling them.
- The law also allows taxpayers to subtract transaction fees, known as “gas fees,” on gains or losses from cryptocurrency sales.
- The law takes effect Jan. …