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House
File
2168
-
Introduced
HOUSE
FILE
2168
BY
DIEKEN
A
BILL
FOR
An
Act
creating
a
state
remittance
tax
and
including
1
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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2168
Section
1.
NEW
SECTION
.
423H.1
Definitions.
1
As
used
in
this
chapter:
2
1.
“Department”
means
the
department
of
revenue.
3
2.
“Director”
means
the
director
of
revenue.
4
3.
“Financial
institution”
means
the
same
as
defined
in
5
section
422.61.
6
4.
“Remittance
transfer”
means
the
same
as
defined
in
15
7
U.S.C.
§1693o-1(g).
8
5.
“Remittance
transfer
provider”
means
any
person
or
9
financial
institution
that
provides
remittance
transfers
for
10
a
consumer
in
the
normal
course
of
business,
whether
or
not
11
the
consumer
holds
an
account
with
such
a
person
or
financial
12
institution.
13
6.
“Sender”
means
the
consumer
who
requests
a
remittance
14
provider
to
send
a
remittance
transfer
for
the
consumer
to
a
15
designated
recipient.
16
Sec.
2.
NEW
SECTION
.
423H.2
Imposition
of
remittance
17
transfer
tax.
18
1.
A
tax
shall
be
imposed
equal
to
fifty
percent
of
any
19
gross
remittance
transfer
amount
made
by
a
sender
in
this
20
state.
21
2.
The
tax
imposed
under
this
chapter
applies
only
to
any
22
remittance
transfer
for
which
the
sender
provides
cash,
a
23
money
order,
a
cashier’s
check,
or
any
other
similar
physical
24
instrument
to
the
remittance
transfer
provider.
The
tax
shall
25
not
be
imposed
on
any
remittance
transfer
for
which
the
funds
26
being
transferred
are
withdrawn
from
an
account
held
in
or
by
a
27
financial
institution.
28
3.
The
tax
imposed
by
this
section
shall
be
in
addition
to
29
any
other
taxes
imposed
and
shall
be
paid
by
the
sender.
30
4.
The
remittance
transfer
provider
shall
collect
the
tax
31
and
transfer
the
tax
on
a
monthly
basis
as
specified
by
the
32
department
pursuant
to
section
423H.3.
33
5.
Where
any
tax
imposed
by
subsection
1
is
not
paid
at
34
the
time
the
remittance
transfer
is
made,
then
to
the
extent
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that
such
tax
is
not
collected,
the
tax
shall
be
paid
by
the
1
remittance
transfer
provider.
2
Sec.
3.
NEW
SECTION
.
423H.3
Administration
by
director.
3
1.
The
director
of
revenue
shall
administer
the
remittance
4
transfer
tax
as
nearly
as
possible
in
conjunction
with
the
5
administration
of
the
state
sales
and
use
tax
law,
except
6
that
portion
of
the
law
that
implements
the
streamlined
7
sales
and
use
tax
agreement.
The
director
shall
provide
8
appropriate
forms,
or
provide
on
the
regular
state
tax
forms,
9
for
reporting
remittance
transfer
tax
liability,
and
for
ease
10
of
administration
may
require
remittance
transfer
tax
liability
11
to
be
identified,
reported,
and
remitted
to
the
department
12
as
sales
and
use
tax
liability,
provided
the
department
has
13
the
ability
to
properly
identify
such
amounts
as
remittance
14
transfer
tax
revenues
upon
receipt.
15
2.
The
director
may
require
all
remittance
transfer
16
providers
to
register
with
the
department.
The
director
may
17
also
require
a
tax
permit
applicable
only
to
this
chapter
for
18
any
remittance
tax
provider
not
collecting
taxes
under
chapter
19
423.
20
3.
Section
422.25,
subsection
4,
sections
422.30,
422.67,
21
and
422.68,
section
422.69,
subsection
1,
sections
422.70,
22
422.71,
422.72,
422.74,
and
422.75,
section
423.14,
subsection
23
1,
and
sections
423.23,
423.24,
423.25,
423.31
through
24
423.35,
423.37
through
423.42,
and
423.47,
consistent
with
the
25
provisions
of
this
chapter,
shall
apply
with
respect
to
the
26
tax
authorized
under
this
chapter,
in
the
same
manner
and
with
27
the
same
effect
as
if
the
taxes
on
the
remittance
transfers
28
were
retail
sales
taxes
within
the
meaning
of
those
statutes.
29
Notwithstanding
this
subsection,
the
director
shall
provide
for
30
monthly
filing
of
returns
and
for
other
than
monthly
filing
31
of
returns
both
as
prescribed
in
section
423.31.
All
taxes
32
collected
under
this
chapter
by
a
remittance
transfer
provider
33
are
deemed
to
be
held
in
trust
for
the
state
of
Iowa.
34
Sec.
4.
NEW
SECTION
.
423H.4
Revenues.
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All
revenues
derived
from
the
tax
shall
be
deposited
into
the
1
general
fund
of
the
state.
2
Sec.
5.
APPLICABILITY.
This
Act
applies
to
remittance
3
transfers
occurring
on
or
after
July
1,
2026.
4
EXPLANATION
5
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
6
the
explanation’s
substance
by
the
members
of
the
general
assembly.
7
This
bill
creates
a
remittance
transfer
tax
at
a
rate
of
8
50
percent
on
the
gross
remittance
transfer
amount
made
by
a
9
sender
in
this
state.
10
The
bill
defines
“remittance
transfer”
based
upon
the
11
federal
definition
in
15
U.S.C.
§1693o-1(g),
which
generally
12
defines
remittance
transfer
to
mean
an
electronic
transfer
of
13
funds
by
a
sender
to
a
recipient,
whether
or
not
the
sender
14
holds
an
account
with
the
remittance
transfer
provider.
15
The
bill
defines
“remittance
provider”
to
mean
any
person
or
16
financial
institution
that
provides
remittance
transfers
for
17
a
consumer
in
the
normal
course
of
business,
whether
or
not
18
the
consumer
holds
an
account
with
such
a
person
or
financial
19
institution.
20
The
tax
imposed
under
the
bill
only
applies
to
remittance
21
transfers
where
the
sender
provides
cash,
a
money
order,
a
22
cashier’s
check,
or
any
other
similar
physical
instrument
to
23
the
remittance
transfer
provider
to
initiate
the
transfer
to
24
the
recipient.
The
tax
shall
not
be
imposed
on
any
remittance
25
transfer
for
which
the
funds
being
transferred
are
withdrawn
26
from
an
account
held
in
or
by
a
financial
institution.
27
The
bill
specifies
the
tax
shall
be
paid
by
the
sender
of
28
the
remittance
transfer.
The
remittance
transfer
provider
is
29
required
to
collect
the
tax
and
to
transfer
the
tax
to
the
30
department
of
revenue
on
a
monthly
basis.
If
the
remittance
31
tax
is
not
collected
at
the
time
of
the
remittance
transfer,
32
the
bill
requires
the
remittance
provider
to
pay
the
tax.
33
The
bill
requires
the
director
of
revenue
to
administer
the
34
remittance
transfer
tax
as
nearly
as
possible
in
conjunction
35
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2168
with
the
administration
of
the
state
sales
and
use
tax
law,
1
except
that
portion
of
the
law
that
implements
the
streamlined
2
sales
and
use
tax
agreement.
3
The
bill
directs
all
revenues
derived
from
the
remittance
4
transfer
tax
to
be
deposited
into
the
general
fund
of
the
5
state.
6
The
tax
applies
to
remittance
transfers
occurring
on
or
7
after
July
1,
2026.
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