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Regular Session, 2014
HOUSE STUDY REQUEST NO. 5
BY REPRESENTATIVE BILLIOT
FINANCIAL INSTITUTIONS: Requests the House Committee on Commerce to study the
feasibility of state taxes on fees collected by money transmitters and the expected
realization of state revenue relative to such taxes
A STUDY REQUEST1
To the House Committee on Commerce to study the feasibility of levying a state tax on fees2
collected by money transmitters in the state of Louisiana and the expectation of3
revenue to be realized from levying such a tax, and whether any other states levy a4
tax on fees collected by money transmitters and realize resulting revenue, and to5
report the findings of the committee to the legislature not later than forty-five days6
prior to the convening of the 2015 Regular Session of the Legislature of Louisiana.7
WHEREAS, R.S. 6:1032(13) provides that "money transmission" means to engage8
in the business of the sale or issuance of payment instruments or of receiving money or9
monetary value for transmission to a location within or outside the United States by any and10
all means, including but not limited to wire, facsimile, or electronic transfer; and11
WHEREAS, the term "money transmission" includes the following:12
(1)Selling or issuing stored value or payment in instruments including checks,13
money orders, and traveler's checks.14
(2)Receiving money or monetary value for transmission including by payment15
instrument, wire, facsimile, electronic transfer, or Automated Clearing House (ACH) debit.16
(3)Providing third-party bill paying services; and17
WHEREAS, except for persons exempted from licensing requirements in R.S.18
6:1034, any person engaged in the business of money transmission or selling checks as a19 HLS 14RS-4995 ORIGINAL
HSR NO. 5
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service or for a fee in the state of Louisiana is required to be licensed by the Office of1
Financial Institutions as required in R.S. 6:1033; and2
WHEREAS, there are approximately sixty-nine licensed money transmitters,3
including online companies, with approximately twelve thousand seven hundred and fifty-4
one physical agent locations in the state of Louisiana; and5
WHEREAS, the customer of a money transmitter pays a fee to the money transmitter6
to accept the customer's money and transport the money to the customer's desired location7
or recipients; and8
WHEREAS, the state has an interest in protecting customers from the risk that9
money transmitters will fail to deliver the funds as agreed and cause their customers to lose10
their money; and11
WHEREAS, in providing regulation of the industry, the Office of Financial12
Institutions collects various application, licensing, and examination fees from licensed13
money transmitters; and14
WHEREAS, while there may be various taxes imposed related to the online transfer15
of money, such as E-commerce taxes or foreign recipient taxes, there are no Louisiana taxes16
imposed for the transmission of money through money transmitters licensed pursuant to R.S.17
6:1033.18
THEREFORE, BE IT RESOLVED that the House of Representatives of the19
Legislature of Louisiana requests the House Committee on Commerce to study the feasibility20
of levying a state tax on fees collected by money transmitters in the state of Louisiana and21
the expectation of revenue to be realized from levying such a tax, and whether any other22
states levy a tax on fees collected by money transmitters and realize resulting revenue, and23
to report the findings of the committee to the legislature not later than forty-five days prior24
to the convening of the 2015 Regular Session of the Legislature of Louisiana.25
BE IT FURTHER RESOLVED that the House Committee on Commerce shall26
specifically solicit input, recommendations, and advice from the Office of Financial27
Institutions.28
BE IT FURTHER RESOL VED that in undertaking the study and issuing29
recommendations, the House Committee on Commerce may request documents or data,30 HLS 14RS-4995 ORIGINAL
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conduct public hearings, hear the testimony of witnesses, and take any other actions that it1
deems necessary to carry out its functions.2
BE IT FURTHER RESOLVED that a copy of this Study Request shall be transmitted3
to the commissioner of the Office of Financial Institutions.4
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Billiot HSR No. 5
Requests the House Committee on Commerce to study the feasibility of levying a state tax
on fees collected by money transmitters in the state of Louisiana and the expectation of
revenue to be realized from levying such a tax, and whether any other states levy a tax on
fees collected by money transmitters and realize resulting revenue, and to report the findings
of the committee at least 45 days prior to the 2015 R.S.