WeVote
Log In

Bill

Bill

LB 1174

Change provisions related to reports of condition under the Nebraska Money Transmitters Act and provide for a remittance transfer tax

109th Legislature (2025-2026) Introduced by Kathleen Kauth

LB 1174 modifies money transmitter reporting rules and institutes a new tax on remittance transfers in Nebraska, affecting both regulatory compliance and consumer costs for money-sending services.

Referred to Banking, Commerce and Insurance Committee
0
WeVote Research Nonpartisan
Bill Summary · LB 1174

Legislative bill overview

LB 1174 modifies reporting requirements for money transmitters operating under Nebraska law and introduces a new tax on remittance transfers (money sent by individuals to recipients in other countries or states). The bill adjusts regulatory compliance standards while establishing a revenue mechanism through the taxation of these transfer services.

Why is this important

Money transmitters serve millions of Nebraskans who send funds internationally or domestically, with remittance transfers representing a significant financial flow. This legislation directly affects both the regulatory burden on transmitter businesses and the cost to individuals sending money, potentially impacting immigrant communities and rural areas reliant on remittance services.

Potential points of contention

  • Cost pass-through to consumers: Remittance taxes are typically absorbed by service users rather than companies, meaning lower-income individuals sending money abroad would face increased fees
  • Regulatory compliance burden: Changes to reporting requirements may increase operational costs for smaller money transmitter businesses, potentially reducing market competition
  • Interstate commerce concerns: Taxation of remittances could create disparities with neighboring states and potentially conflict with federal commerce regulation authority

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

Sign in to ask a question.