SB282 Alabama 2025 Session

Summary

Primary Sponsor

Will BarfootSenator

Republican

Session

2025 Regular Session

Title

Virtual currency, declares preemption of virtual currency or cryptocurrency regulation by the Legislature and exempts virtual currency from ad valorem tax

Summary

SB282 would exempt virtual currency from Alabama's ad valorem taxes and define it for tax purposes.

What This Bill Does

It amends Section 40-9-1 to add virtual currency to the list of property exempt from ad valorem taxation. It defines virtual currency as a digital representation of value that is not the U.S. dollar or a foreign currency and that functions as a unit of account, store of value, or medium of exchange. The exemption applies to virtual currency held in Alabama, removing it from the local property tax base. The act becomes effective October 1, 2025.

Who It Affects

• Individuals and businesses that own virtual currency in Alabama would not owe ad valorem tax on that currency.
• Local tax assessors, counties, and municipalities would apply the exemption and not tax virtual currency holdings as property.

Key Provisions

• Amends Section 40-9-1 to exempt virtual currency from ad valorem taxation.
• Adds a definition of virtual currency as a digital representation of value (not US dollars or foreign currency) that functions as a unit of account, store of value, or medium of exchange.
• Places virtual currency on the exempt list of property and persons for ad valorem tax purposes.
• Effective date of October 1, 2025.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Government Administration