IN SB0202

Money transmitters licensed under the Money Transmission Modernization Act must collect an international money wiring fee on all money transfers sent to locations outside the United States: $5 for transfers up to $500, and $5 plus 1% of amounts exceeding $500 for larger transfers.

U.S. citizens, nationals, and lawful permanent or conditional permanent residents who pay the fee may claim a state income tax credit equal to the total fees paid during the taxable year.

The tax credit is non-refundable, cannot exceed the individual's adjusted gross income tax liability, and cannot be carried forward or back to other tax years.

Revenue from the fee must be deposited into the state general fund, with licensees required to remit collections quarterly to the Department of State Revenue.

Licensees who fail to report or remit fees may have their licenses suspended, and the state police drug enforcement section and attorney general's office may assist with audits and prosecutions; effective dates are January 1, 2026 (retroactive) for the tax credit and July 1, 2026 for fee collection.