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HF 601

A bill for an act relating to fees for wire transmissions, and related income tax credits.

2025-2026 Regular Session Introduced by Mark Thompson

New quarterly wire-transfer fees ($5 up to $500, plus 2% of amounts over $500) fund anti-human trafficking; taxpayers receive a credit equal to fees paid; customers get notices.

Subcommittee recommends amendment and passage.
#financialinstitutions #incometaxes #money #taxcredits
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Bill Summary · HF 601

HF 601 — Summary

Purpose and scope

HF 601 introduces a new fee regime on wire transmissions (money transfers by wire, domestic or international) and creates an income tax credit for taxpayers related to the fees paid. The bill directs the collection of these fees by licensed money transmitters or their authorized delegates, with proceeds dedicated to anti-human trafficking efforts through the state’s Office to Combat Human Trafficking. The bill also requires appropriate notices to customers about the tax credit.

Primary intent:
- Create a dedicated revenue stream from wire transmission fees.
- Provide an individual income tax credit to taxpayers for fees paid on wire transmissions.
- Support anti-human trafficking programs funded through the Department of Revenue’s remittances to the anti-trafficking office.

Key provisions

1) Definition
- “Wire transmission” means money transmission by wire, including both domestic and international transfers.

2) Fee structure (to be collected in addition to existing fees for wire transmissions)
- For each wire transmission that is $500 or less: a fee of $5.
- For the portion of a transmission exceeding $500: an additional fee equal to 2% of the amount over $500.
- These fees are in addition to any other fee required by law.

3) Remittance and reporting
- Fees collected by the licensee or their authorized delegate must be remitted quarterly to the Department of Revenue (DOR) in the form and manner prescribed by DOR, in consultation with the Department of Public Safety (DPS).
- All remittances and required forms must be filed with DOR no later than the 15th day of the month following the end of each calendar quarter.

4) Use of funds
- DOR must account for all collected fees and pay them over to the Office to Combat Human Trafficking (established in section 80.45).

5) Customer notice and tax credit
- Licensees and their authorized delegates must post a notice (as prescribed by DPS) informing customers that, upon filing an individual income tax return with a valid Social Security Number (SSN) or Taxpayer Identification Number (TIN), the customer is entitled to an individual income tax credit equal to the amount of wire transmission fees paid during the tax year.

6) Enforcement
- DOR, in consultation with DPS, is charged with enforcing the provisions of this section.
- If a licensee or their delegate fails to comply with the quarterly remittance requirement, DOR has enforcement powers (specific penalties or remedies are not fully shown in the provided excerpt).

Who is affected

  • Licensees and authorized delegates providing money transfer services (wire transmissions): responsible for collecting and remitting fees, posting notices, and complying with reporting requirements.
  • Customers receiving wire transmission services: subject to the new fee, and potentially eligible for a tax credit equal to fees paid.
  • Individual taxpayers: eligible for a tax credit against income tax liability for fees paid in the tax year, upon filing with a valid SSN or ITIN.
  • Department of Revenue and Department of Public Safety: responsible for administration, reporting, enforcement, and oversight.
  • Office to Combat Human Trafficking: receives the remitted funds.

Timeline and status

  • Introduced: February 25, 2025
  • Status: Subcommittee recommends amendment and passage
  • Subcommittee actions:
    • March 18, 2025: Subcommittee members named (Vondran, James, Meggers)
    • March 25, 2025: Subcommittee meeting and recommendation for amendment and passage
  • Sponsor: THOMPSON (primary)

Potential impact and considerations

  • Revenue: Creates a new, quarterly stream of fees earmarked for anti-human trafficking work.
  • Tax policy: Establishes a potentially refundable-like credit against individual income tax liability (credit equals fees paid in the tax year), subject to how the credit interacts with overall tax liability.
  • Administrative: Requires new remittance processes, quarterly reporting, public notices, and interagency coordination (DOR and DPS).
  • Consumer costs: Fees increase the cost of wire transmissions, particularly for smaller transfers under $500, though the volume of such transfers will influence overall impact.

Compiled from official sources — confirm details with the bill’s official record.

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