LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6899 NOTE PREPARED: Jan 3, 2024
BILL NUMBER: HB 1296 BILL AMENDED:
SUBJECT: Remittance Fee for International Money Wiring.
FIRST AUTHOR: Rep. Speedy BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill establishes the Indiana Foreign Electronic Transfer Fees Property Tax
Relief Fund (fund) for the purpose of issuing property tax relief rebates to individuals who qualify for the
over 65 property tax credit.
The bill provides that the Department of State Revenue (DOR) administers the fund. It requires the sender
of a money transmission transaction to pay a fee if the recipient of the money is located outside of the United
States. The bill provides a tax credit for an individual who: (1) is a citizen or national of the United States,
or is an alien who has lawful permanent resident status or conditional permanent resident status; and (2) paid
any fees for a money transmission transaction during the taxable year.
This bill makes an appropriation.
Effective Date: July 1, 2024; January 1, 2025.
Explanation of State Expenditures: The DOR will administer the new fund. Under the bill, the costs of
administering the fund and issuing rebates may be paid from the fund. There is a continuous appropriation
from the fund. Money in the fund does not revert to the state General Fund.
Explanation of State Revenues: State revenues will be reduced beginning in FY 2026. U.S. citizens,
nationals, or those with lawful or conditional resident status will be eligible for a credit against Indiana
individual income tax in the amount of any transfer fees paid. The credit may not be carried forward, carried
back, or refunded. The credit will reduce state General Fund revenues by an indeterminable but potentially
significant amount.
HB 1296 1 According to the World Bank, There were $81.6 B in transfers from the U.S. to other countries in CY 2022.
If Indiana represents 2% of that amount, then transfers from Indiana could amount to $1.6 B. Based on this
amount, revenue from the money transmission fee could range from $16 M to $32 M annually. Beginning
in FY 2026, state revenues will be reduced by an undetermined portion of this amount.
Explanation of Local Expenditures: Beginning in CY 2025, county auditors will be required to send a list
of eligible taxpayers to the Department of Local Government Finance and the DOR, resulting in a slight
workload increase.
Explanation of Local Revenues: Total local revenues will not change under this bill. Taxpayers who receive
property tax credits through the over 65 circuit breaker will receive a rebate under the bill. Each year, the
rebate granted to each eligible taxpayer will equal (1) the amount of fees transferred to the fund in the past
year divided by (2) the number of taxpayers who received an over 65 circuit breaker credit in the current
year. An individual’s rebate may not exceed their net property tax liability for that year. Total rebates could
range from $16 M to $32 M per year beginning in CY 2025.
State Agencies Affected: Department of State Revenue; Department of Local Government Finance.
Local Agencies Affected: County auditors.
Information Sources: Personal Remittances, World Bank,
https://data.worldbank.org/indicator/BM.TRF.PWKR.CD.DT
Fiscal Analyst: Bob Sigalow, 317-232-9859.
HB 1296 2