Bill Text: IA HF2064 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act creating a money transfer service fee and related income tax credit, providing for deposit of the fees in the natural resources and outdoor recreation trust fund, making penalties applicable, providing a contingency for repeal, and including retroactive applicability provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-01-24 - Subcommittee: Holt, Bloomingdale and Wolfe. H.J. 150. [HF2064 Detail]
Download: Iowa-2017-HF2064-Introduced.html
House File 2064 - Introduced HOUSE FILE BY WHEELER A BILL FOR 1 An Act creating a money transfer service fee and related 2 income tax credit, providing for deposit of the fees in the 3 natural resources and outdoor recreation trust fund, making 4 penalties applicable, providing a contingency for repeal, 5 and including retroactive applicability provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 5797YH (4) 87 gh/rn PAG LIN 1 1 Section 1. NEW SECTION. 422.10C Money transfer service fee 1 2 tax credit. 1 3 1. The taxes imposed under this division, less the credits 1 4 allowed under section 422.12, shall be reduced by a money 1 5 transfer service fee tax credit equal to the amount of money 1 6 transfer service fees under section 533C.104 paid by the 1 7 taxpayer during the tax year. 1 8 2. A credit shall not be allowed under this section to 1 9 an individual who does not include on the tax return for the 1 10 taxable year such individual's valid taxpayer identification 1 11 number and, if the individual is married, the valid taxpayer 1 12 identification number of such individual's spouse. For 1 13 purposes of this subsection, "taxpayer identification number" 1 14 means the same as defined in section 32 of the Internal Revenue 1 15 Code. 1 16 3. Any credit in excess of the tax liability is refundable. 1 17 In lieu of claiming a refund, the taxpayer may elect to have 1 18 the overpayment shown on the taxpayer's final, completed return 1 19 credited to the tax liability for the following tax year. 1 20 Sec. 2. NEW SECTION. 533C.104 Money transfer service fee ==== 1 21 licensee requirements ==== enforcement. 1 22 1. For purposes of this section, unless the context 1 23 otherwise requires: 1 24 a. "Department" means the department of revenue. 1 25 b. "Director" means the director of revenue. 1 26 c. "Money transfer service" means the transmission of 1 27 money by any means including transmission within this country 1 28 or to or from locations abroad by payment instrument, wire, 1 29 facsimile, or electronic transfer, courier, or otherwise. 1 30 2. a. A licensee and the authorized delegates of a licensee 1 31 shall collect from customers a money transfer service fee of 1 32 five dollars for each money transfer service transaction and 1 33 in addition to such fee, if applicable, an amount equal to one 1 34 percent of the amount of the money transfer service transaction 1 35 in excess of five hundred dollars. 2 1 b. Money transfer service fees shall be remitted to the 2 2 department by licensees and their authorized delegates who 2 3 furnish money transfer services. 2 4 c. The department, in consultation with the superintendent, 2 5 shall administer and enforce the money transfer service fee as 2 6 nearly as possible in conjunction with the administration and 2 7 enforcement of the state sales and use tax law, except that 2 8 portion of the law which implements the streamlined sales and 2 9 use tax agreement. 2 10 d. The director may require licensees and their authorized 2 11 delegates to register with the department for purposes of this 2 12 section. The director may also require a permit applicable 2 13 only to this section for any licensee or the authorized 2 14 delegate of a licensee not collecting taxes under chapter 423. 2 15 e. All powers and requirements of the director to administer 2 16 the state sales and use tax law are applicable to the 2 17 administration of the money transfer service fee, including but 2 18 not limited to the provisions of section 422.25, subsection 4, 2 19 sections 422.30, 422.67, and 422.68, section 422.69, subsection 2 20 1, sections 422.70 through 422.75, section 423.14, subsection 2 21 1 and subsection 2, paragraphs "b" through "e", and sections 2 22 423.15, 423.23, 423.24, 423.25, 423.31 through 423.35, 423.37 2 23 through 423.42, 423.46, and 423.47. 2 24 f. Failure by licensees or their authorized delegates to 2 25 collect and remit money transfer service fees or to comply with 2 26 any other provision of this section shall subject the licensee 2 27 and the authorized delegates of a licensee to the enforcement 2 28 provisions of article 7 of this chapter. The director and 2 29 the department shall cooperate with the superintendent in 2 30 identifying violations of this section and in discharging the 2 31 superintendent's enforcement responsibilities under article 7 2 32 of this chapter. 2 33 g. All money transfer service fees collected under this 2 34 section shall be deposited in a separate account in the natural 2 35 resources and outdoor recreation trust fund created in section 3 1 461.31. 3 2 3. A licensee and the authorized delegates of a licensee 3 3 furnishing money transfer services shall post a notice in the 3 4 form and manner prescribed by the superintendent that notifies 3 5 customers that upon filing an individual income tax return with 3 6 a valid taxpayer identification number, the customer shall be 3 7 entitled to an individual income tax credit equal to the amount 3 8 of money transfer service fees paid by the customer during the 3 9 tax year. 3 10 Sec. 3. CONTINGENT REPEAL. Section 533C.104, as enacted 3 11 by this Act, is repealed if the general assembly repeals the 3 12 personal net income tax in chapter 422, division II. 3 13 Sec. 4. RETROACTIVE APPLICABILITY. The following provision 3 14 or provisions of this Act apply retroactively to January 1, 3 15 2018, for tax years beginning on or after that date: 3 16 The section of this Act enacting section 422.10C. 3 17 EXPLANATION 3 18 The inclusion of this explanation does not constitute agreement with 3 19 the explanation's substance by the members of the general assembly. 3 20 This bill establishes a money transfer service fee and 3 21 related income tax credit. 3 22 The bill requires a licensee under Code chapter 533C, the 3 23 uniform money services Act, to collect from customers a money 3 24 transfer service fee of $5 for each money transfer service 3 25 transaction and, if applicable, an amount equal to 1 percent of 3 26 the amount of a money transfer service transaction in excess 3 27 of $500. The bill defines "money transfer service" as the 3 28 transmission of money by any means, including transmission 3 29 within this country or to or from locations abroad by payment 3 30 instrument, wire, facsimile, or electronic transfer, courier, 3 31 or otherwise. 3 32 The bill requires licensees to remit the money transfer 3 33 service fees collected to the department of revenue. The 3 34 bill requires the department, in consultation with the 3 35 superintendent of banking, to administer and enforce the money 4 1 transfer service fee as nearly as possible in conjunction with 4 2 the administration and enforcement of the state sales and use 4 3 tax law, except that portion of the law which implements the 4 4 streamlined sales and use tax agreement. 4 5 The bill permits the director of revenue to require 4 6 licensees to register with the department for purposes of 4 7 the bill. The bill permits the director to require a permit 4 8 applicable only to the collection of money transfer service 4 9 fees for any licensee not collecting sales and use taxes under 4 10 Code chapter 423. The bill provides that all powers and 4 11 requirements of the director to administer the state sales and 4 12 use tax law are applicable to the administration of the money 4 13 transfer service fee. 4 14 The bill provides that failure by licensees to collect and 4 15 remit money transfer service fees or to comply with any other 4 16 provision of the bill shall subject the licensee to specified 4 17 enforcement provisions of article 7 of Code chapter 533C. The 4 18 bill requires the director and the department to cooperate 4 19 with the superintendent in identifying violations of this 4 20 division and in discharging the superintendent's enforcement 4 21 responsibilities under article 7 of Code chapter 533C. 4 22 Penalties provided for in article 7 of Code chapter 533C 4 23 include suspension and revocation of a license under Code 4 24 chapter 533C, civil penalties, and criminal penalties that 4 25 include class "C" and "D" felonies and aggravated and simple 4 26 misdemeanors. A class "C" felony is punishable by confinement 4 27 for no more than 10 years and a fine of at least $1,000 but 4 28 not more than $10,000. A class "D" felony is punishable by 4 29 confinement for no more than five years and a fine of at least 4 30 $750 but not more than $7,500. An aggravated misdemeanor 4 31 is punishable by confinement for no more than two years and 4 32 a fine of at least $625 but not more than $6,250. A simple 4 33 misdemeanor is punishable by confinement for no more than 30 4 34 days or a fine of at least $65 but not more than $625 or by 4 35 both. 5 1 The bill provides that all money transfer service fees 5 2 collected shall be deposited in the natural resources and 5 3 outdoor recreation trust fund. 5 4 The bill requires a licensee furnishing money transfer 5 5 services to post a notice in the form and manner prescribed 5 6 by the superintendent that notifies customers that upon 5 7 filing an individual income tax return with a valid taxpayer 5 8 identification number, the customer shall be entitled to an 5 9 individual income tax credit equal to the amount of money 5 10 transfer service fees paid by the customer during the tax year. 5 11 The bill also applies to authorized delegates of a licensee 5 12 under Code chapter 533C. 5 13 The bill provides an individual income tax credit equal to 5 14 the amount of money transfer service fees paid by the taxpayer 5 15 during the tax year. The credit shall not be allowed to an 5 16 individual who does not include on the tax return for the 5 17 taxable year the individual's valid taxpayer identification 5 18 number and that of the individual's spouse if applicable. The 5 19 bill provides that the credit is refundable and may be credited 5 20 to the individual's tax liability for the following tax year. 5 21 The provision enacting the tax credit applies retroactively to 5 22 January 1, 2018, for tax years beginning on or after that date. 5 23 The bill provides a contingency for the repeal of the money 5 24 transfer service fee if the general assembly repeals the 5 25 personal net income tax in Code chapter 422, division II. LSB 5797YH (4) 87 gh/rn
