Bill Analyses and Ratings
Bill Information: S1440 – Excise Tax on International Money Transmissions
Bill Summary
Senate Bill 1440 imposes a new excise tax on international money transmissions originating in Idaho, collected at the point of transaction by licensed money transmitters. The tax is structured as $5.00 on the first $500 of each transaction plus 4% of any amount exceeding $500. Licensed transmitters collect the tax from senders at the time of the transaction, issue receipts documenting the tax paid, and remit collections to the State Tax Commission on a quarterly basis.
The bill creates a critical exemption: senders who can prove legal U.S. residence through a valid Idaho driver’s license or ID card, U.S. passport, or U.S. birth certificate are exempt from the tax, as are senders transmitting directly from their own account at a licensed banking institution where the bank holds proof of legal residence. Legally present individuals who do pay the tax can recover it through a fully refundable Idaho income tax credit, or through a direct refund application for those not required to file an income tax return.
Revenues flow to the state general fund, with an amount equal to credits and refunds issued in the prior twelve months first directed to the state refund account. The Department of Finance gains authority to suspend money transmitter licenses for failure to file or remit, and may claim against a licensee’s required security device to recover unpaid tax amounts.
Overall Assessment
This bill imposes a new transaction tax that falls primarily on individuals who cannot or do not provide documentation of legal U.S. residence when sending money internationally from Idaho — in practice, undocumented immigrants and others without qualifying identification. Legally present senders who pay the tax can recover it in full through a refundable tax credit or direct refund, meaning the tax functions as a permanent financial burden only on those unable to prove legal status. The bill creates new administrative obligations for licensed money transmitters, including quarterly reporting, receipt requirements, and exposure to license suspension for noncompliance. Adding a new excise tax runs counter to the principle of keeping government’s tax burden low.
Rating Breakdown
ARTICLE I. Responsibility in Government (-1)
Section 26-2929(2) creates an entirely new excise tax — $5.00 on the first $500 plus 4% on amounts above $500 — imposed on every qualifying international money transmission originating in Idaho. This expands the state's taxing authority and adds a new revenue stream to the general fund, running counter to the principle of limiting government growth and keeping taxes low.
ARTICLE II. Citizen Involvement in Government (0)
This bill establishes a tax on international money transmissions and creates associated administrative procedures. It has no bearing on citizen participation in government, voting, elections, or political processes.
ARTICLE III. Education (0)
This bill operates entirely within the domain of taxation and financial regulation. It contains no provisions related to education policy, school funding, curricula, or parental rights in education.
ARTICLE IV. Agriculture (0)
The bill addresses international money transmission taxation and has no provisions touching agricultural operations, farm policy, water law, or rural markets.
ARTICLE V. Water (0)
This bill is confined to financial transaction taxation and contains no provisions related to water rights, water management, irrigation, or federal interference in Idaho's water policy.
ARTICLE VI. Natural Resources and Environment (0)
The bill creates a tax on international money transmissions and has no connection to natural resource management, environmental stewardship, federal land policy, or wilderness designations.
ARTICLE VII. Energy (0)
This bill addresses financial transaction taxation exclusively. It contains no provisions related to energy production, energy independence, utility rates, or energy research.
ARTICLE VIII. Idaho National Laboratories (0)
The bill creates a tax on international money transmissions and has no connection to the Idaho National Laboratory, nuclear research, or technology development policy.
ARTICLE IX. Private Property Rights (0)
While the bill imposes a tax that reduces the funds a sender retains, it does not involve property takings, development rights, eminent domain, or the specific property rights protections addressed by this metric.
ARTICLE X. State and Federal Lands (0)
This bill is limited to taxation of financial transactions and has no provisions concerning state or federal land ownership, management, or transfer.
ARTICLE XI. Wildlife Management (0)
The bill addresses international money transmission taxation and contains no provisions related to fish, game, hunting, predator management, or federal wildlife designations.
ARTICLE XII. Economy (0)
The bill imposes new compliance costs on licensed money transmitters — quarterly reporting, receipt issuance, and exposure to license suspension — and adds a transaction tax on a segment of international remittances. However, the tax's primary burden falls on individual senders rather than Idaho businesses broadly, and the bill does not directly affect the small business regulatory environment, labor markets, or transportation infrastructure that define this metric's core concerns.
ARTICLE XIII. Health and Welfare (0)
This bill establishes a financial transaction tax and has no provisions related to healthcare delivery, health insurance, welfare programs, or conscience protections for medical providers.
ARTICLE XIV. American Family (0)
The bill creates a tax on international money transmissions and does not address marriage, parental rights, abortion, child welfare, or other family policy matters covered by this metric.
ARTICLE XV. Older Americans (0)
This bill addresses taxation of international financial transactions and contains no provisions specifically affecting older Idahoans, retirement security, or senior services.
ARTICLE XVI. Law and Order with Justice (0)
The bill's enforcement mechanisms — license suspension, tax liens, and audits under Section 26-2929(6) and (7) — are civil tax administration tools, not criminal justice measures. The metric's focus on gun rights, sentencing, drug policy, and state sovereignty in criminal justice does not intersect with this bill's financial regulatory framework.
ARTICLE XVII. National Defense - Securing the Border (0)
The bill's exemption structure in Section 26-2929(8) effectively targets undocumented individuals by requiring proof of legal U.S. residence to avoid the tax, but it does not enact border security measures, immigration enforcement, military deployment, or any mechanism to remove individuals from the country. The tax is a revenue measure, not an immigration enforcement tool.
ARTICLE XVIII. Election of Judges and Idaho Supreme Court Justices (0)
This bill addresses financial transaction taxation and has no connection to judicial elections, judicial philosophy, or constitutional interpretation.
ARTICLE XIX. Religious Liberty (0)
The bill creates a tax on international money transmissions and contains no provisions that restrict or protect religious exercise, conscience rights, or faith-based institutions.