Budget & Taxes (Tax Credits)

This bill creates a new excise tax on international money transfers originating in Idaho, charging a $5 fee plus 4% on amounts over $500 for each transaction. The tax applies to individuals sending money to recipients outside the United States through various methods like wire transfers or electronic payments, but exempts transactions where the sender uses their own bank account or can prove U.S. legal residence with valid identification. Money transmission companies must collect and remit the tax quarterly to the state, while senders receive receipts that explain how they can claim a refund or tax credit. The state tax commission will distribute the collected revenue, with amounts used for refunds going to the state refund account and the remainder funding the general fund.

This bill eliminates the Commission on Hispanic Affairs from Idaho law and removes it from the list of organizations eligible for state income tax credits. The legislation repeals the existing chapter governing the commission and amends tax code sections to delete references to the commission in tobacco tax revenue allocations and charitable contribution tax credit provisions. While the bill removes the commission's legal status and funding sources, it does not address the underlying policy goals or community needs the commission previously served. The changes take effect on July 1, 2027, following a legislative intent to reduce government bureaucracy.