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To: Banking and Financial
Services
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Representative Sanford
HOUSE BILL NO. 362
AN ACT TO REQUIRE A PERSON LICENSED TO DO BUSINESS AS A MONEY 1
TRANSMISSION BUSINESS TO COLLECT A FEE FOR EACH TRANSACTION; TO 2
AUTHORIZE THE SUSPENSION OF A LICENSE AS A MONEY TRANSMISSION 3
BUSINESS FOR FAILURE TO COMPLY WITH THE MONEY TRANSMISSION FEE 4
REQUIREMENTS; TO EXEMPT CERTAIN TRANSFERS AND CERTAIN FINANCIAL 5
INSTITUTIONS FROM THE MONEY TRANSMISSION FEE REQUIREMENTS; TO 6
CREATE A TAX CREDIT FOR MONEY TRANSMISSION FEES PAID BY A TAXPAYER 7
DURING THE TAX YEAR; AND FOR RELATED PURPOSES. 8
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 9
SECTION 1. (1) Except as provided in subsections (8) and 10
(9) of this section, a person licensed to engage in the business 11
of money transmission under the Money Transmission Modernization 12
Act (Sections 75-16-1 through 75-16-87) shall collect a fee of 13
Five Dollars ($5.00) for each transaction not in excess of Five 14
Hundred Dollars ($500.00) and in addition to this fee, an amount 15
equal to one percent (1%) of the amount of each transaction in 16
excess of Five Hundred Dollars ($500.00). 17
(2) The fee prescribed by subsection (1) of this section 18
must be remitted quarterly to the Department of Revenue on such 19
forms as the department may prescribe for that purpose. Required 20
forms and remittances must be filed with the department on or 21
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before the fifteenth day of the month following the close of each 22
calendar quarter. 23
(3) (a) A licensee shall post a notice on a form prescribed 24
by the Department of Revenue that notifies customers that upon 25
filing an individual income tax return with either a valid social 26
security number or a valid taxpayer identification number, the 27
customer is entitled to an income tax credit equal to the amount 28
of the fee paid by the customer for the transaction. 29
(b) Before February 1 of each year, every licensee 30
shall provide to the Department of Revenue, on those forms that 31
the department may prescribe for such purpose, a report of all 32
fees paid by the licensee under this section. The report must 33
include the amounts of the fees paid by each transferor pursuant 34
to this act, identifying each transferor by social security number 35
or taxpayer identification number. 36
(4) The Department of Revenue shall be afforded all 37
provisions currently under law to enforce the provisions of 38
subsection (2) of this section. If a licensee fails to file 39
reports or fails to remit the fee required by subsection (1) of 40
this section, the department may notify the Commissioner of 41
Banking and Consumer Finance of the licensee's failure to comply, 42
and upon receipt of such notification, the Commissioner shall 43
suspend the license of the licensee pursuant to the Money 44
Transmission Modernization Act. The licensee may not reapply for 45
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a license until all required reports are filed and all required 46
fee amounts have been remitted. 47
(5) Upon notice from the Department of Revenue as provided 48
in subsection (4) of this section, the Commissioner of Banking and 49
Consumer Finance may make a claim against the surety bond of the 50
licensee on behalf of the State of Mississippi. 51
(6) The fee required by subsection (1) of this section 52
applies only to a transaction for which the transferor provides 53
cash, a money order, a cashier's check, or any other similar 54
physical instrument to the licensee, whether or not the transferor 55
holds an account with the licensee, to make an electronic transfer 56
of funds to any person located in a foreign country and identified 57
by the transferor as the authorized recipient of the funds. 58
(7) The fee required by subsection (1) of this section does 59
not apply to any transfer for which the funds being transferred 60
are: 61
(a) Withdrawn from an account held in or by a financial 62
institution subject to the requirements under Subchapter II, 63
Chapter 53, Title 31, United States Code. For purposes of this 64
paragraph (a), "financial institution" means: 65
(i) An insured bank, as defined in Section 3(h) of 66
the Federal Deposit Insurance Act (12 USC Section 1813(h)); 67
(ii) A commercial bank or trust company; 68
(iii) A private banker; 69
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(iv) An agency or branch of a foreign bank in the 70
United States; 71
(v) Any credit union; 72
(vi) A thrift institution; 73
(vii) A broker or dealer registered with the 74
Securities and Exchange Commission under the Securities Exchange 75
Act of 1934 (15 USC Section 78a et seq.); or 76
(viii) A broker or dealer in securities or 77
commodities; 78
(b) Funded with a debit card or a credit card that is 79
issued in the United States; or 80
(c) Transferred to a person located in the United 81
States. 82
SECTION 2. (1) There is allowed against the tax imposed by 83
this chapter a credit equal to the amount of all money 84
transmission fees assessed pursuant to Section 1 of this act and 85
paid by the taxpayer during the tax year. The taxpayer is 86
entitled to the credit upon filing, on forms and schedules 87
prescribed by the Department of Revenue, an income tax return 88
bearing either a valid social security number or taxpayer 89
identification number and attesting the amount of all money 90
transmission fees assessed pursuant to Section 1 of this act and 91
paid by the taxpayer during the tax year. The Department of 92
Revenue shall determine the accuracy of each attestation by 93
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ST: Money transmission fees; require money
transmitters to collect on certain transfers.
reference to the reports submitted by money transmission licensees 94
pursuant to Section 1 of this act. 95
(2) A tax credit claimed under this section but not used in 96
a taxable year may be carried forward for the five (5) succeeding 97
tax years. 98
SECTION 3. Section 2 of this act shall be codified as a new 99
section in Chapter 7, Title 27, Mississippi Code of 1972. 100
SECTION 4. Nothing in this act shall affect or defeat any 101
claim, assessment, appeal, suit, right or cause of action for 102
taxes due or accrued under the income tax laws before the date on 103
which Section 2 of this act becomes effective, whether such 104
claims, assessments, appeals, suits or actions have been begun 105
before the date on which Section 2 of this act becomes effective 106
or are begun thereafter; and the provisions of the income tax laws 107
are expressly continued in full force, effect and operation for 108
the purpose of the assessment, collection and enrollment of liens 109
for any taxes due or accrued and the execution of any warrant 110
under such laws before the date on which Section 2 of this act 111
becomes effective, and for the imposition of any penalties, 112
forfeitures or claims for failure to comply with such laws. 113
SECTION 5. Sections 2 and 4 of this act shall take effect 114
and be in force from and after January 1, 2026. Sections 1 and 3 115
of this act shall take effect and be in force from and after July 116
1, 2026. 117