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LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
SENATE
SENATE
BILL
NO.
1440
BY
STATE
AFFAIRS
COMMITTEE
AN
ACT
1
RELATING
TO
TAXATION;
AMENDING
CHAPTER
29,
TITLE
26,
IDAHO
CODE,
BY
THE
AD
-
2
DITION
OF
A
NEW
SECTION
26
-
2929,
IDAHO
CODE,
TO
ESTABLISH
PROVISIONS
RE
-
3
GARDING
THE
IMPOSITION
OF
AN
EXCISE
TAX
ON
INTERNATIONAL
MONEY
TRANS
-
4
MISSIONS;
AMENDING
CHAPTER
30,
TITLE
63,
IDAHO
CODE,
BY
THE
ADDITION
5
OF
A
NEW
SECTION
63
-
3029E,
IDAHO
CODE,
TO
PROVIDE
FOR
AN
INTERNATIONAL
6
MONEY
TRANSMISSION
TAX
CREDIT
OR
REFUND;
AND
DECLARING
AN
EMERGENCY
AND
7
PROVIDING
AN
EFFECTIVE
DATE.
8
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
9
SECTION
1.
That
Chapter
29,
Title
26,
Idaho
Code,
be,
and
the
same
is
10
hereby
amended
by
the
addition
thereto
of
a
NEW
SECTION
,
to
be
known
and
des
-
1
1
ignated
as
Section
26
-
2929,
Idaho
Code,
and
to
read
as
follows:
12
26
-
2929.
EXCISE
TAX
ON
INTERNATIONAL
MONEY
TRANSMISSIONS.
(1)
As
used
13
in
this
section:
14
(a)
"International
money
transmission"
means
a
money
transmission
to
a
15
recipient
outside
of
the
boundaries
of
the
United
States
by
any
and
all
16
means,
including
but
not
limited
to
payment
instrument,
wire,
facsim
-
17
ile,
or
electronic
transfer,
when
such
transmission
originates
within
18
the
state
of
Idaho.
19
(b)
"Transaction
amount"
means
the
amount
intended
to
be
received
by
20
the
recipient
of
an
international
money
transmission.
21
(2)
An
excise
tax
is
hereby
imposed
on
international
money
transmis
-
22
sions
as
set
forth
in
this
section.
The
excise
tax
shall
be
collected
by
a
23
licensee
or
its
authorized
representative
pursuant
to
this
chapter
in
addi
-
24
tion
to
any
fee
that
the
licensee
or
its
authorized
representative
may
charge
25
for
an
international
money
transmission.
The
excise
tax
shall
be
imposed
on
26
the
individual
sender
of
every
international
money
transmission
at
the
time
27
of
the
transaction,
whether
the
individual
sender
is
acting
on
behalf
of
the
28
sender
or
on
behalf
of
any
other
person
or
any
corporate
or
legal
entity,
ex
-
29
cept
as
provided
in
subsection
(8)
of
this
section.
The
excise
tax
shall
30
be
in
the
amount
of
five
dollars
($5.00)
for
the
first
five
hundred
dollars
31
($500)
of
each
transaction
plus
an
amount
equal
to
four
percent
(4%)
of
the
32
transaction
amount
in
excess
of
five
hundred
dollars
($500).
33
(3)
A
sender
of
an
international
money
transmission
subject
to
the
tax
34
imposed
by
this
section
shall
be
provided
a
receipt
by
the
licensee
or
its
au
-
35
thorized
representative
at
the
time
of
the
transaction
that
states
the
tax
36
amount
imposed
and
paid
for
the
transaction.
The
receipt
shall
also
notify
37
the
sender
that
an
individual
legally
present
in
the
United
States
may
be
38
entitled
to
an
income
tax
credit
or
refund
for
the
amount
of
the
interna
-
39
tional
money
transmission
excise
tax
pursuant
to
the
provisions
of
section
40
63
-
3029E,
Idaho
Code,
provide
information
on
how
such
individual
may
obtain
41
such
credit
or
refund,
and
state
that
the
receipt
should
be
retained
for
the
42
2
individual's
Idaho
income
tax
records.
The
language
of
the
notice
shall
be
1
prescribed
by
the
state
tax
commission
and
disseminated
to
every
licensee.
2
(4)
The
tax
imposed
by
subsection
(2)
of
this
section
shall
be
remitted
3
by
the
licensee
on
a
quarterly
basis
to
the
state
tax
commission
on
such
forms
4
as
the
state
tax
commission
may
prescribe
for
such
purpose.
All
of
the
re
-
5
quired
forms
and
records
of
international
money
transmissions
shall
be
filed
6
with
the
state
tax
commission
no
later
than
the
twentieth
day
of
the
month
7
following
the
close
of
each
calendar
quarter.
8
(5)
The
state
tax
commission
shall
distribute
the
revenues
derived
from
9
the
excise
tax
as
follows:
10
(a)
An
amount
equal
to
the
sum
of
the
income
tax
credits
and
refunds
1
1
granted
pursuant
to
section
63
-
3029E,
Idaho
Code,
during
the
previous
12
twelve
(12)
months
shall
be
distributed
to
the
state
refund
account
of
13
the
general
fund;
and
14
(b)
The
remaining
amount
shall
be
transferred
to
the
general
fund.
15
(6)
The
state
tax
commission
shall
have
the
power
and
duty
to
estab
-
16
lish
necessary
procedures
to
enable
licensees
to
comply
with
the
provisions
17
of
this
section.
Any
deficiency
in
tax
and
notice
of
deficiency,
as
well
as
18
the
review,
audit,
collection,
and
enforcement
procedures
provided
by
chap
-
19
ter
30,
title
63,
Idaho
Code,
not
directly
conflicting
with
the
provisions
20
of
this
section
shall
apply
and
be
available
to
the
state
tax
commission
for
21
enforcement
of
the
provisions
of
this
section
and
the
assessment
and
collec
-
22
tion
of
any
amounts
due.
Whenever
liens
or
any
other
proceedings
are
defined
23
as
income
tax
liens
or
proceedings,
such
provisions
shall,
when
applied
in
24
enforcement
or
collection
pursuant
to
this
section,
be
described
as
inter
-
25
national
money
transmission
excise
tax
liens
and
proceedings.
For
the
pur
-
26
poses
of
this
section,
any
reference
to
taxable
year
in
the
income
tax
act
27
shall
be
considered
a
calendar
quarter.
28
(7)
If
a
licensee
fails
to
file
reports
or
fails
to
remit
the
tax
imposed
29
by
the
provisions
of
this
section,
the
state
tax
commission
shall
notify
the
30
department
of
finance,
which
shall
have
the
authority
to
suspend
the
money
31
transmitter
license
of
the
licensee
and
its
authorized
representatives
in
32
accordance
with
the
provisions
of
this
chapter.
The
licensee
and
its
autho
-
33
rized
representatives
may
not
reapply
for
a
license
until
all
required
re
-
34
ports
have
been
filed
and
all
required
tax
amounts
have
been
remitted.
Fur
-
35
ther,
upon
request
from
the
state
tax
commission,
the
department
of
finance
36
may
make
a
claim
against
the
security
device
required
by
section
26
-
2908,
37
Idaho
Code,
of
the
licensee
on
behalf
of
the
state
to
secure
any
amounts
owing
38
from
the
tax
imposed
by
the
provisions
of
this
section.
39
(8)
The
excise
tax
imposed
by
the
provisions
of
this
section
shall
not
40
apply
to
transactions
where
money
is
debited
from
the
international
money
41
transmission
sender's
own
account
with
a
banking
institution
or
other
entity
42
licensed
by
the
department
of
finance
or
when
such
banking
institution
or
en
-
43
tity
has
proof
of
the
sender's
legal
residence
in
the
United
States.
Such
44
proof
shall
be
in
the
form
of
a
valid
Idaho
state
-
issued
identification
card
45
or
driver's
license,
United
States
passport,
or
birth
certificate
showing
46
the
requester
was
born
in
the
United
States.
47
(9)
The
department
of
finance
and
the
state
tax
commission
may
each
pro
-
48
mulgate
rules,
pursuant
to
chapter
52,
title
67,
Idaho
Code,
to
implement
the
49
provisions
of
this
section,
subject
to
legislative
approval.
50
3
SECTION
2.
That
Chapter
30,
Title
63,
Idaho
Code,
be,
and
the
same
is
1
hereby
amended
by
the
addition
thereto
of
a
NEW
SECTION
,
to
be
known
and
des
-
2
ignated
as
Section
63
-
3029E,
Idaho
Code,
and
to
read
as
follows:
3
63
-
3029E.
INCOME
TAX
CREDIT
OR
REFUND
FOR
INTERNATIONAL
MONEY
TRANS
-
4
MISSION.
(1)
Any
taxpayer
who
is
required
to
file
and
who
has
filed
an
Idaho
5
income
tax
return
shall
be
allowed
a
refundable
credit
in
the
amount
of
in
-
6
ternational
money
transmission
excise
taxes
paid
by
such
taxpayer
during
a
7
tax
year
pursuant
to
the
provisions
of
section
26
-
2929,
Idaho
Code.
The
tax
-
8
payer
shall
provide
proof
of
legal
residence
in
the
United
States
with
the
9
Idaho
income
tax
return
to
be
eligible
to
claim
the
credit.
If
taxes
due
are
10
less
than
the
total
credit
allowed,
the
taxpayer
shall
be
paid
a
refund
equal
1
1
to
the
balance
of
the
unused
credit.
12
(2)
Any
person
not
required
to
file
an
Idaho
income
tax
return
shall
be
13
entitled
to
a
refund
in
the
amount
provided
in
subsection
(1)
of
this
section
14
if
the
person
provides
proof
of
such
person's
legal
residence
status
in
the
15
United
States.
16
(3)
Any
refund
shall
be
paid
to
such
individual
only
upon
application
17
therefor,
at
such
time
and
in
such
manner
as
may
be
prescribed
by
the
state
18
tax
commission.
The
state
tax
commission
shall
prescribe
the
method
by
which
19
the
refund
is
to
be
made
to
the
taxpayer
or
other
applicant.
The
refunds
au
-
20
thorized
by
this
section
shall
be
paid
from
the
state
refund
account
in
the
21
same
manner
as
the
refunds
authorized
by
section
63
-
3067,
Idaho
Code.
22
(4)
An
application
for
any
refund
that
is
due
and
payable
pursuant
to
23
the
provisions
of
this
section
must
be
filed
with
the
state
tax
commission
24
within
three
(3)
years
of:
25
(a)
The
due
date,
including
extensions,
of
the
return
required
pursuant
26
to
section
63
-
3030,
Idaho
Code,
if
the
applicant
is
required
to
file
a
27
return;
or
28
(b)
The
fifteenth
day
of
April
of
the
year
following
the
year
in
which
29
the
tax
was
paid.
30
(5)
The
state
tax
commission
may
audit
an
application
for
a
refund
is
-
31
sued
pursuant
to
this
section
in
the
same
manner
as
an
income
tax
return
au
-
32
dit.
33
SECTION
3.
An
emergency
existing
therefor,
which
emergency
is
hereby
34
declared
to
exist,
this
act
shall
be
in
full
force
and
effect
on
and
after
35
July
1,
2026.
36