Licensed money transfer companies would charge fees on overseas transfers

Licensed money transfer companies would collect a fee from senders. The fee would apply when the person receiving the money is outside the United States. The fee would be $5 for transfers up to $500, and $5 plus 1% of the amount above $500 for larger transfers. Companies would send the collected fees to the state each quarter, and the money would go into the state's general fund. The proposed fee would take effect July 1, 2026.

Eligible people could claim a state income tax credit equal to the fees they paid. It would cover U.S. citizens and nationals, plus people with lawful permanent or conditional permanent resident status. They would have to claim the credit on their state tax return and provide information the state requires. The credit could only reduce their remaining tax bill; unused amounts could not be refunded or used in another year. The credit would apply to tax years beginning on or after January 1, 2026.

State officials could suspend a company's license for failing to report or send in the fees. This would apply to licensed money transfer companies that fail to report or send in the fees. A suspended company could reapply only after filing all required reports and paying all required fees. This provision would take effect July 1, 2026.