Iowa House Bill HF601

Iowa 2025-2026 Regular Session

• Introduced: 2/25/25
• Refer: 2/25/25

Caption

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

Impact

The implementation of HF601 will have notable implications for the operations of financial institutions that provide wire transmission services. By establishing a clear framework for fees associated with these services, the bill aims to standardize the processes applicable to money transfers, thereby potentially increasing transparency for consumers. Furthermore, the legislation includes provisions for a tax credit that allows customers to offset their income tax liability by the amount paid in fees for wire transmissions, thereby providing financial relief to users of such services.

Summary

House File 601 (HF601) proposes modifications to the collection of fees associated with wire transmissions, which include money transfers both domestically and internationally. As defined in the bill, a fee of $5 will be charged for every wire transmission of $500 or less, with an additional fee of 2% for amounts exceeding $500. These fees are to be remitted on a quarterly basis to the department of revenue, and the bill mandates that the collected fees will support efforts aimed at combating human trafficking.

Conclusion

HF601 represents a focused legislative effort to regulate wire transmission fees and link these fees to useful social initiatives. As lawmakers consider the bill, discussions likely will revolve around balancing the need for adequate funding for important causes against the financial impact on consumers who utilize these services. Overall, the bill highlights the legislative intent to enhance oversight of money transfer practices and support for community welfare.

Contention

While the bill is designed to help fund initiatives against human trafficking, there may be concerns from consumer advocacy groups regarding the burden of the fees being placed on individuals using wire transfer services. Critics may argue that additional fees could disproportionately affect low-income individuals who rely on these services. Additionally, there is potential for debate regarding the effectiveness of allocating fees specifically toward human trafficking efforts, with some stakeholders possibly advocating for a more comprehensive approach to funding social services.