AZ SB1235

Establishes Bitcoin as legal tender in Arizona, alongside U.S. currency and precious metal coins (specie).

Defines "legal tender" in Arizona Revised Statutes Section 1-901 to include: U.S. Constitution or Congress-authorized currency, specie issued by the U.S. government, court-approved specie, and Bitcoin.

Updates references to "legal tender" in Arizona tax code and trust company regulations to use the new definition in Section 1-901 instead of prior statutory definitions.

Exempts capital gains or losses from exchanging one form of legal tender for another from Arizona state income tax for both individuals and corporations (effective for tax years beginning after December 31, 2017).