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14
7-25-207
59-35-101
59-35-102
59-35-103
59-35-104
0
International Money Transmission Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Stephanie Gricius
Senate Sponsor: Daniel McCay
LONG TITLE
General Description:
This bill enacts provisions related to international money transmissions.
Highlighted Provisions:
This bill:
defines terms;
imposes a tax on international money transmissions on or after a certain date;
exempts an international money transmission from the tax if the customer requesting the
transaction presents valid identification;
requires the tax to be stated separately on an invoice or receipt;
requires licensed money transmitters to remit collected taxes quarterly and report
annually to the State Tax Commission;
provides for the State Tax Commission's administration of the tax;
requires the commissioner of the Department of Financial Institutions to annually provide
a list of each licensed money transmitter to the State Tax Commission; and
makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
ENACTS:
7-25-207
, Utah Code Annotated 1953
59-35-101
, Utah Code Annotated 1953
59-35-102
, Utah Code Annotated 1953
59-35-103
, Utah Code Annotated 1953
59-35-104
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
7-25-207
is enacted to read:
7-25-207
. Commissioner to annually provide list of licensees to tax commission.
On or before January 31 of each calendar year, the commissioner shall provide the State
Tax Commission with a list of each person licensed under this chapter.
Section 2. Section
59-35-101
is enacted to read:
35. International Money Transmission Tax
59-35-101
. Definitions.
As used in this chapter:
(1)
"Authorized agent" means the same as that term is defined in Section
7-25-102
.
(2)
"Customer" means an individual for whom a licensee conducts an international money
transmission.
(3)
"Depository institution" means the same as that term is defined in Section
7-1-103
.
(4)
"Foreign country" means a jurisdiction other than:
(a)
the United States; or
(b)
a state, district, commonwealth, territory, or insular possession of the United States.
(5)
(a)
"International money transmission" means a money transmission conducted by a
licensee or an authorized agent on behalf of a customer, in which money is
transmitted to a foreign country.
(b)
"International money transmission" does not include a transaction conducted by a
depository institution or a subsidiary or affiliate of the depository institution.
(6)
"Licensee" means a person licensed by the Department of Financial Institutions under
Title 7, Chapter 25, Money Transmitter Act.
(7)
"Money transmission" means the same as that term is defined in Section
7-25-102
.
(8)
(a)
"Transmission amount" means the total amount of money transmitted through a
single international money transmission transaction.
(b)
"Transmission amount" does not include amounts paid or charged for an
international money transmission transaction, including any service charge,
transaction fee, or sales and use tax imposed under Chapter 12, Sales and Use Tax
Act.
(9)
(a)
"Valid identification" means any of the following non-expired forms of
identification:
(i)
a United States passport or United States passport card;
(ii)
a state-issued driver license or state-issued identification card;
(iii)
a United States military identification;
(iv)
a state-issued concealed carry permit;
(v)
a United States resident alien card;
(vi)
an identification of a federally recognized Indian tribe;
(vii)
a United States visa that is classified as H-2A or H-2B; or
(viii)
a driver license or identification card issued to a diplomat as defined in Section
41-6a-1901
.
(b)
"Valid identification" does not include a Utah driving privilege card.
Section 3. Section
59-35-102
is enacted to read:
59-35-102
. Imposition of tax on international money transmissions -- Rate -- Tax
paid by customer and collected by licensee or authorized agent -- Itemized receipt
required -- Transactions exempt from tax.
(1)
Except as provided in Subsection
(3)
, a tax is imposed on an international money
transmission on or after January 1, 2027, at a rate equal to 2% of the international money
transmission amount.
(2)
The tax imposed under Subsection
(1)
shall be:
(a)
paid by the customer requesting the international money transmission;
(b)
collected by the licensee or an authorized agent of the licensee at the time the
international money transmission is requested; and
(c)
stated separately on an invoice or receipt provided to the customer for the
international money transmission.
(3)
An international money transmission is exempt from the tax imposed under Subsection
(1)
if the customer requesting the international money transmission presents valid
identification of the customer to the licensee or an authorized agent of the licensee at the
time the customer requests the international money transmission.
Section 4. Section
59-35-103
is enacted to read:
59-35-103
. Remittance and deposit of tax revenue -- Administration --
Rulemaking.
(1)
A licensee shall remit the taxes that the licensee or an authorized agent of the licensee
collects under this chapter to the commission quarterly on or before the last day of the
month following each calendar quarterly period using a form prescribed by the
commission.
(2)
The commission shall:
(a)
deposit revenues generated by the tax under this chapter into the General Fund; and
(b)
administer, collect, and enforce the tax under this chapter in accordance with Chapter
1, General Taxation Policies.
(3)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules to implement and enforce this chapter.
Section 5. Section
59-35-104
is enacted to read:
59-35-104
. Annual reporting by licensee to commission -- Licensee retention of
exempt transaction information.
(1)
For a calendar year beginning on or after January 1, 2027, a licensee shall annually
report to the commission:
(a)
the total number of international money transmissions conducted by the licensee or
an authorized agent of the licensee for the calendar year;
(b)
the total amount of money transmitted through the international money transmissions
reported under Subsection
(1)(a)
;
(c)
of the international money transmissions reported for the calendar year under
Subsection
(1)(a)
:
(i)
the total number of international money transmissions for which the tax under this
chapter was imposed; and
(ii)
the total number of international money transmissions exempted from the tax
under this chapter in accordance with Subsection
59-35-102(3)
; and
(d)
any other information required by the commission.
(2)
A licensee shall file the report described in Subsection
(1)
:
(a)
on or before January 31 of the calendar year immediately following the calendar year
for which the report is filed; and
(b)
electronically using a form prescribed by the commission.
(3)
(a)
For each international money transmission that a licensee or an authorized agent
of the licensee conducts on behalf of a customer to which the tax imposed by this
chapter does not apply because the customer presented valid identification in
accordance with Subsection
59-35-102(3)
, the licensee shall retain the following
information:
(i)
the form of identification presented by the customer; and
(ii)
the identification number.
(b)
A licensee shall retain the information described in Subsection
(3)(a)
for the same
time period a person is required to keep books and records under Section
59-1-1406
.
Section 6.
Effective Date.
(1)
Except as provided in Subsection (2), this bill takes effect for a future taxable year
beginning on or after January 1, 2027.
(2)
The actions affecting Section 7-25-207
take effect on January 1, 2027.
1-28-26 2:33 PM