02-18 16:15 2nd Sub. (Gray) H.B. 284
Stephanie Gricius proposes the following substitute bill:
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International Money Transmission Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Stephanie Gricius
Senate Sponsor: Daniel McCay
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LONG TITLE
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General Description:
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This bill enacts a tax and income tax credit related to international money transmissions.
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Highlighted Provisions:
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This bill:
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▸ defines terms;
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▸ imposes a tax on international money transmissions on or after a certain date;
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▸ exempts an international money transmission from the tax if the customer requesting the
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transaction presents valid identification;
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▸ requires the tax to be stated separately on an invoice or receipt;
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▸ requires licensed money transmitters to remit collected taxes quarterly and report
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annually to the State Tax Commission;
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▸ provides for the State Tax Commission's administration of the tax;
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▸ enacts a nonrefundable income tax credit for individuals who pay the tax;
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▸ requires the commissioner of the Department of Financial Institutions to annually provide
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a list of all licensed money transmitters to the State Tax Commission; and
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▸ makes technical changes.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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This bill provides a special effective date.
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Utah Code Sections Affected:
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AMENDS:
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59-10-1002.2, as last amended by Laws of Utah 2023, Chapters 460, 462
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ENACTS:
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7-25-207, Utah Code Annotated 1953
2nd Sub. H.B. 284 2nd Sub. (Gray) H.B. 284 02-18 16:15
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59-10-1048, Utah Code Annotated 1953
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59-32-101, Utah Code Annotated 1953
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59-32-102, Utah Code Annotated 1953
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59-32-103, Utah Code Annotated 1953
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59-32-104, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 7-25-207 is enacted to read:
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7-25-207 . Commissioner to annually provide list of licensees to tax commission.
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On or before January 31 of each calendar year, the commissioner shall provide the State
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Tax Commission with a list of all persons licensed under this chapter.
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Section 2. Section 59-10-1002.2 is amended to read:
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59-10-1002.2 . Apportionment of tax credits.
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(1) A nonresident individual or a part-year resident individual that claims a tax credit in
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accordance with Section 59-10-1017, 59-10-1018, 59-10-1019, 59-10-1022, 59-10-1023,
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59-10-1024, 59-10-1028, 59-10-1042, 59-10-1043, 59-10-1044, 59-10-1046, [or ]
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59-10-1047, or 59-10-1048 may only claim an apportioned amount of the tax credit
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equal to:
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(a) for a nonresident individual, the product of:
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(i) the state income tax percentage for the nonresident individual; and
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(ii) the amount of the tax credit that the nonresident individual would have been
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allowed to claim but for the apportionment requirements of this section; or
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(b) for a part-year resident individual, the product of:
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(i) the state income tax percentage for the part-year resident individual; and
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(ii) the amount of the tax credit that the part-year resident individual would have been
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allowed to claim but for the apportionment requirements of this section.
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(2) A nonresident estate or trust that claims a tax credit in accordance with Section
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59-10-1017, 59-10-1020, 59-10-1022, 59-10-1024, or 59-10-1028 may only claim an
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apportioned amount of the tax credit equal to the product of:
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(a) the state income tax percentage for the nonresident estate or trust; and
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(b) the amount of the tax credit that the nonresident estate or trust would have been
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allowed to claim but for the apportionment requirements of this section.
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Section 3. Section 59-10-1048 is enacted to read:
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59-10-1048 . Nonrefundable tax credit for payment of international money
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transmission tax.
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(1) As used in this section, "international money transmission tax" means the tax imposed
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by Chapter 32, International Money Transmission Tax.
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(2) Subject to Section 59-10-1002.2, a claimant who pays an international money
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transmission tax may claim on the claimant's individual income tax return a
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nonrefundable tax credit in an amount equal to the aggregate amount of international
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money transmission taxes that the claimant paid during the taxable year.
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(3) A claimant may not carry forward or carry back the amount of the tax credit under this
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section that exceeds the claimant's tax liability for the taxable year.
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Section 4. Section 59-32-101 is enacted to read:
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CHAPTER 32. INTERNATIONAL MONEY TRANSMISSION TAX
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59-32-101 . Definitions.
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As used in this chapter:
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(1) "Authorized agent" means the same as that term is defined in Section 7-25-102.
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(2) "Customer" means an individual for whom a licensee conducts an international money
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transmission.
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(3) "Foreign country" means a jurisdiction other than:
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(a) the United States; or
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(b) a state, district, commonwealth, territory, or insular possession of the United States.
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(4)(a) "International money transmission" means a money transmission, as defined in
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Section 7-25-102, conducted by a licensee or an authorized agent on behalf of a
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customer, in which money is transmitted to a foreign country.
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(b) "International money transmission" does not include a transaction conducted by a
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depository institution as defined in Section 7-1-103 or a subsidiary or affiliate of the
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depository institution.
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(5) "Licensee" means a person licensed by the Department of Financial Institutions under
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Title 7, Chapter 25, Money Transmitter Act.
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(6)(a) "Transmission amount" means the total amount of money transmitted through a
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single international money transmission transaction.
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(b) "Transmission amount" does not include amounts paid or charged for an
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international money transmission transaction, including any service charge,
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transaction fee, or sales and use tax imposed under Chapter 12, Sales and Use Tax
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Act.
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(7)(a) "Valid identification" means any of the following non-expired forms of
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identification:
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(i) a United States passport or United States passport card;
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(ii) a state-issued driver license or state-issued identification card;
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(iii) a United States military identification;
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(iv) a state-issued concealed carry permit;
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(v) a United States resident alien card;
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(vi) an identification of a federally recognized Indian tribe;
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(vii) a United States visa that is classified as H-2A or H-2B; or
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(viii) a driver license or identification card issued to a diplomat as defined in Section
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41-6a-1901.
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(b) "Valid identification" does not include a Utah driving privilege card.
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Section 5. Section 59-32-102 is enacted to read:
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59-32-102 . Imposition of tax on international money transmissions -- Rate -- Tax
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paid by customer and collected by licensee or authorized agent -- Itemized receipt
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required -- Transactions exempt from tax.
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(1) Except as provided in Subsection (3), a tax is imposed on an international money
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transmission on or after January 1, 2026, at a rate equal to 2% of the transmission
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amount.
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(2) The tax imposed under Subsection (1) shall be:
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(a) paid by the customer requesting the international money transmission;
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(b) collected by the licensee or authorized agent at the time the international money
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transmission is requested; and
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(c) stated separately on an invoice or receipt provided to the customer for the
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international money transmission transaction.
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(3) An international money transmission is exempt from the tax imposed under Subsection
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(1) if the customer requesting the international money transmission presents valid
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identification to the licensee or authorized agent at the time the international money
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transmission is requested.
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Section 6. Section 59-32-103 is enacted to read:
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59-32-103 . Remittance and deposit of tax revenue -- Administration --
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Rulemaking.
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(1) A licensee shall remit the taxes that the licensee or an authorized agent collects under
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this chapter to the commission quarterly on or before the last day of the month following
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each calendar quarterly period using a form prescribed by the commission.
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(2) The commission shall:
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(a) deposit revenues generated by the tax under this chapter into the General Fund; and
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(b) administer, collect, and enforce the tax under this chapter in accordance with Chapter
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1, General Taxation Policies.
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(3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
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commission may make rules to implement and enforce this chapter.
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Section 7. Section 59-32-104 is enacted to read:
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59-32-104 . Annual reporting by licensee to commission -- Licensee to retain
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exempt transaction information.
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(1) For a calendar year beginning on or after January 1, 2027, a licensee shall annually
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report to the commission:
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(a) the number of international money transmissions conducted by the licensee or an
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authorized agent for the previous calendar year;
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(b) the total amount of money transmitted through the international money transmissions
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reported under Subsection (1)(a); and
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(c) any other information required by the commission.
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(2) A licensee shall file the report described in Subsection (1):
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(a) on or before January 31 of each calendar year; and
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(b) electronically using a form prescribed by the commission.
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(3)(a) For each international money transmission that a licensee or an authorized agent
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conducts on behalf of a customer to which the tax imposed by this chapter does not
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apply in accordance with Subsection 59-32-102(3) because the customer presented
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valid identification, the licensee shall retain the following information:
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(i) the form of identification presented by the customer; and
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(ii) the identification number.
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(b) A licensee shall retain the information described in Subsection (3)(a) for the same
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time period a person is required to keep books and records under Section 59-1-1406.
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Section 8. Effective Date.
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(1) Except as provided in Subsection (2), this bill takes effect for a future taxable year
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beginning on or after January 1, 2026.
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(2) The actions affecting Section 7-25-207 take effect on January 1, 2026.
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