Louisiana House Bill HB809

Louisiana 2015 Regular Session

• Introduced: 4/22/15
• Refer: 4/27/15

Caption

Provides with respect to a tax on certain money transmission activities and a tax credit for payment of the tax (OR DECREASE GF RV See Note)

Impact

The impact of HB 809 is significant as it establishes new regulations for money transmission in Louisiana. It entails licensing requirements for transmitters and ties the maintenance of their licenses to compliance with this new tax. Specifically, failure to file reports or remit taxes could result in the suspension of a transmitter’s license, introducing a level of oversight to the money transmission industry. Moreover, the creation of the Quality of Life Fund directs the tax proceeds toward health programs and park improvements, indicating a shift in how resources are allocated at the state level.

Summary

House Bill 809 introduces a tax on certain money transmission activities in Louisiana, specifically targeting transactions conducted through licensed money transmitters. The proposed tax requires that customers pay $5 for transactions of $500 or less, with an additional charge of 1% applied to any amount exceeding that threshold. This tax is to be collected at the time of the transaction and is intended to fund the newly established Quality of Life Fund, which allocates resources to programs and initiatives in community health and public parks, among others. The bill aims to levy this tax efficiently while simplifying the compliance process for financial institutions.

Sentiment

The general sentiment surrounding HB 809 appears to be supportive among lawmakers focused on community health and state budget management. Supporters argue that the tax is a pragmatic approach to generating revenue that can substantially benefit public health initiatives. However, there are also concerns raised regarding the burden on consumers and the potential impact on lower-income populations who may rely on money transmission services to send remittances or conduct personal transactions. The discussion indicates a divide in views on how best to balance revenue generation with the needs of vulnerable populations.

Contention

Notable points of contention in discussions around HB 809 include the implications of taxing money transmission services and how it might affect access for those who depend on them. Critics may point out that while the funding for health services is crucial, the tax could deter people from using legal money transfer services and push them towards unregulated alternatives. The bill’s provisions to create a tax credit for those who pay the transmission tax may address some of these concerns but also raise questions about the effectiveness of such credits in mitigating the burden without undermining the bill's intended revenue objectives.