As Introduced
136th General Assembly
Regular Session H. B. No. 149
2025-2026
Representatives King, Miller, K.
Cosponsors: Representatives Hall, T., Williams, Click, Gross, Ritter, Johnson,
Daniels, Lear, Klopfenstein
A B I L L
To amend section 5747.98 and to enact sections
1315.131, 5502.80, and 5747.87 of the Revised
Code to levy a transfer fee on money
transmissions, to authorize an income tax credit
based on the amount of the transfer fees paid,
and to name this act Ohio's Withholding Illegal
Revenue Entering Drug Markets (WIRED) Act.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 5747.98 be amended and sections
1315.131, 5502.80, and 5747.87 of the Revised Code be enacted to
read as follows:
Sec. 1315.131. (A) To provide revenue for local law
enforcement, a transfer fee is imposed on licensees and
authorized delegates that transmit money from a customer in this
state. The amount of the transfer fee equals three per cent of
the amount of money, or its equivalent, transmitted by the
licensee or authorized delegate in the transaction.
(B) A licensee or authorized delegate may bill or invoice
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17 H. B. No. 149 Page 2
As Introduced
the transfer fee imposed by this section to the customer from
which the money is transmitted, but shall provide that customer
with an itemized receipt that lists the amount of the transfer
fee as a separate line item from any other amounts charged by
the licensee or authorized delegate in connection with the
transaction.
(C) A person that transmitted money from a customer in
this state shall file a quarterly report and pay the aggregate
amount of transfer fees due on all such transactions during the
previous quarter to the superintendent of financial institutions
in a form and manner prescribed by the superintendent. If the
report is filed and the amount of the transfer fees shown on the
report to be due is paid on or before the date the report is
required to be filed, the person is entitled to a discount equal
to three-fourths of one per cent of the amount otherwise shown
to be due on the report.
(D) The withholding illegal revenue entering drug markets
fund is created in the state treasury. All transfer fees
collected by the superintendent under this section shall be
deposited into the fund. All investment earnings of the fund
shall be credited to the fund. The superintendent and the
director of public safety shall use the moneys in the fund to
make transfers as required by section 5747.87 of the Revised
Code and for the purposes described in section 5502.80 of the
Revised Code.
(E) Every licensee and authorized delegate that transfers
money from customers in this state shall conspicuously post a
notice in the licensee's or authorized delegate's place of
business, in a form prescribed by the superintendent, that
informs customers of the tax credit authorized by section
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47 H. B. No. 149 Page 3
As Introduced
5747.87 of the Revised Code for transfer fees imposed by this
section that are billed or invoiced to the customer.
Sec. 5502.80. (A) As used in this section, "law
enforcement agency" means an organized police department,
sheriff's office, or marshal's office of any county, municipal
corporation, or township.
(B) The department of public safety shall use moneys
deposited to the withholding illegal revenue entering drug
markets fund, under section 1315.131 of the Revised Code, to
award grants to law enforcement agencies to defray costs
incurred by those agencies for investigation of human
trafficking and drug trafficking, and enforcement of related
laws.
(C) The director of public safety, in administering the
grants, shall do both of the following:
(1) Ensure that funds are distributed equitably to
jurisdictions throughout the state and among law enforcement
agencies of varying sizes.
(2) Allow more than one law enforcement agency to apply
collectively for a grant to fund cooperative efforts to
investigate human trafficking and drug trafficking and enforce
related laws, including efforts conducted through a drug task
force, as defined in section 5502.68 of the Revised Code.
(D) The director of public safety, in consultation with
the superintendent of financial institutions, shall adopt rules
under Chapter 119. of the Revised Code to establish guidelines
for the grant program and for administering the fund and to
establish application procedures for law enforcement agencies
seeking a grant under this section.
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76 H. B. No. 149 Page 4
As Introduced
Sec. 5747.87. (A) As used in this section, "authorized
delegate," "licensee," and "transmit money" have the same
meanings as in section 1315.01 of the Revised Code.
(B) A refundable credit is allowed against a taxpayer's
aggregate tax liability under section 5747.02 of the Revised
Code. The credit shall equal the amount of transfer fees imposed
by section 1315.131 of the Revised Code that are billed or
invoiced to, and paid by, a taxpayer in the taxable year, but
the amount of credit allowed shall not exceed, for any taxable
year, three hundred dollars, including any credit amounts
apportioned or allocated to the taxpayer by a pass-through
entity. The credit applies only to transfer fees paid for
transactions in which the taxpayer is the customer of a licensee
or authorized delegate. The credit is not available for transfer
fees paid by a taxpayer acting as a licensee or authorized
delegate by transmitting money on behalf of another customer.
The credit shall be claimed in the order required under
section 5747.98 of the Revised Code. If the amount of the credit
under this section exceeds the aggregate amount of tax otherwise
due under section 5747.02 of the Revised Code after deduction of
all other credits in that order, the taxpayer is entitled to a
refund of the excess.
If the taxpayer is a direct or indirect investor in a
pass-through entity that paid transfer fees under section
1315.131 of the Revised Code during the taxpayer's taxable year
that would have qualified the entity for the credit if the
entity was a taxpayer, the taxpayer may claim its proportionate
or distributive share of the credit allowed under this section.
(C) The tax commissioner may require the taxpayer to
furnish proof of payment of transfer fees under section 1315.131
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106 H. B. No. 149 Page 5
As Introduced
of the Revised Code as a condition of obtaining the credit
authorized under this section.
(D) On or before the thirtieth day of July of each year,
the tax commissioner shall certify to the superintendent of the
division of financial institutions and the director of budget
and management the amount of tax credits claimed under this
section in the preceding fiscal year. Within fifteen days after
receipt of this certification, the director of budget and
management shall transfer money equal to the certified amount to
the general revenue fund from the withholding illegal revenue
entering drug markets fund created in section 1315.131 of the
Revised Code.
Sec. 5747.98. (A) To provide a uniform procedure for
calculating a taxpayer's aggregate tax liability under section
5747.02 of the Revised Code, a taxpayer shall claim any credits
to which the taxpayer is entitled in the following order:
Either the retirement income credit under division (B) of
section 5747.055 of the Revised Code or the lump sum retirement
income credits under divisions (C), (D), and (E) of that
section;
Either the senior citizen credit under division (F) of
section 5747.055 of the Revised Code or the lump sum
distribution credit under division (G) of that section;
The dependent care credit under section 5747.054 of the
Revised Code;
The credit for displaced workers who pay for job training
under section 5747.27 of the Revised Code;
The campaign contribution credit under section 5747.29 of
the Revised Code;
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135 H. B. No. 149 Page 6
As Introduced
The twenty-dollar personal exemption credit under section
5747.022 of the Revised Code;
The joint filing credit under division (G) (E) of section
5747.05 of the Revised Code;
The earned income credit under section 5747.71 of the
Revised Code;
The nonrefundable credit for education expenses under
section 5747.72 of the Revised Code;
The nonrefundable credit for donations to scholarship
granting organizations under section 5747.73 of the Revised
Code;
The nonrefundable credit for tuition paid to a
nonchartered nonpublic school under section 5747.75 of the
Revised Code;
The nonrefundable vocational job credit under section
5747.057 of the Revised Code;
The nonrefundable job retention credit under division (B)
of section 5747.058 of the Revised Code;
The enterprise zone credit under section 5709.66 of the
Revised Code;
The credit for beginning farmers who participate in a
financial management program under division (B) of section
5747.77 of the Revised Code;
The credit for commercial vehicle operator training
expenses under section 5747.82 of the Revised Code;
The nonrefundable welcome home Ohio (WHO) program credit
under section 122.633 of the Revised Code;
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162 H. B. No. 149 Page 7
As Introduced
The credit for selling or renting agricultural assets to
beginning farmers under division (A) of section 5747.77 of the
Revised Code;
The credit for purchases of qualifying grape production
property under section 5747.28 of the Revised Code;
The small business investment credit under section 5747.81
of the Revised Code;
The nonrefundable lead abatement credit under section
5747.26 of the Revised Code;
The opportunity zone investment credit under section
122.84 of the Revised Code;
The enterprise zone credits under section 5709.65 of the
Revised Code;
The research and development credit under section 5747.331
of the Revised Code;
The credit for rehabilitating a historic building under
section 5747.76 of the Revised Code;
The nonrefundable Ohio low-income housing tax credit under
section 5747.83 of the Revised Code;
The nonrefundable affordable single-family home credit
under section 5747.84 of the Revised Code;
The nonresident credit under division (A) of section
5747.05 of the Revised Code;
The credit for a resident's out-of-state income under
division (B) of section 5747.05 of the Revised Code;
The refundable motion picture and broadway theatrical
production credit under section 5747.66 of the Revised Code;
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189 H. B. No. 149 Page 8
As Introduced
The refundable credit for film and theater capital
improvement projects under section 5747.67 of the Revised Code;
The refundable jobs creation credit or job retention
credit under division (A) of section 5747.058 of the Revised
Code;
The refundable credit for taxes paid by a qualifying
entity granted under section 5747.059 of the Revised Code;
The refundable credits for taxes paid by a qualifying
pass-through entity granted under division (I) of section
5747.08 of the Revised Code;
The refundable credit under section 5747.80 of the Revised
Code for losses on loans made to the Ohio venture capital
program under sections 150.01 to 150.10 of the Revised Code;
The refundable credit for rehabilitating a historic
building under section 5747.76 of the Revised Code;
The refundable credit under section 5747.39 of the Revised
Code for taxes levied under section 5747.38 of the Revised Code
paid by an electing pass-through entity . ;
The refundable credit under section 5747.87 of the Revised
Code for the transfer fees paid under section 1315.131 of the
Revised Code.
(B) For any credit, except the refundable credits
enumerated in this section and the credit granted under division
(H) of section 5747.08 of the Revised Code, the amount of the
credit for a taxable year shall not exceed the taxpayer's
aggregate amount of tax due under section 5747.02 of the Revised
Code, after allowing for any other credit that precedes it in
the order required under this section. Any excess amount of a
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217 H. B. No. 149 Page 9
As Introduced
particular credit may be carried forward if authorized under the
section creating that credit. Nothing in this chapter shall be
construed to allow a taxpayer to claim, directly or indirectly,
a credit more than once for a taxable year.
Section 2. That existing section 5747.98 of the Revised
Code is hereby repealed.
Section 3. The enactment by this act of section 5747.87 of
the Revised Code applies to taxable years ending on or after the
effective date of this section.
Section 4. The transfer fee imposed by section 1315.131 of
the Revised Code, as enacted by this act, applies to
transactions on and after the first day of the first month that
begins after the effective date of this section.
Section 5. This act shall be known as Ohio's Withholding
Illegal Revenue Entering Drug Markets (WIRED) Act.
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232