HB 284 Utah House · 2025 General Session

International Money Transmission Amendments

HB 284 imposes a 2% tax on international money transmissions (money sent to foreign countries) starting January 1, 2026, affecting individuals and businesses using money transmitters like Western Union. The tax is collected by the transmitter at the time of transaction and must be listed separately on receipts, but is waived if the customer presents valid ID (e.g., passport or driver's license). Money transmitters must remit collected taxes quarterly to the state and report annually to the State Tax Commission. Individuals who pay the tax can claim a nonrefundable credit against their Utah income tax, equal to the amount paid. The bill also requires the Department of Financial Institutions to share licensed transmitter lists with the Tax Commission annually.

Issues: ✓ Budget & Taxes

Bill status passed 3 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Feb 2025

Senate Passage

Feb 2025

Governor

Introduced Jan 21, 2025 Last action Mar 8, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

Substitute #1 → Substitute #2 · 7 edits

MODERATE

This bill substitute adds a new requirement for the Department of Financial Institutions to annually provide a list of licensed money transmitters to the State Tax Commission, clarifies definitions to include 'authorized agents' and 'transmission amounts' separately from fees, and updates reporting requirements to include annual rather than just quarterly reports. The substantive policy changes focus on administrative oversight and clarifying what constitutes taxable amounts versus fees.

Scope change

The bill now explicitly includes transactions conducted by authorized agents on behalf of customers and clarifies that service charges and fees are not part of the taxable transmission amount.

REQUIREMENT

Added requirement for the Department of Financial Institutions commissioner to provide an annual list of all licensed money transmitters to the State Tax Commission by January 31 each year.

Changed licensee reporting requirements to include an annual report to the State Tax Commission in addition to quarterly tax remittance.

Added requirement that the tax must be stated separately on an invoice or receipt.

Added requirement for the commissioner of the Department of Financial Institutions to annually provide a list of all licensed money transmitters to the State Tax Commission.

DEFINITION

Added new definitions for 'authorized agent' (same as Section 7-25-102) and 'transmission amount' (total money transmitted excluding fees, service charges, or taxes).

Clarified that international money transmission can be conducted by either a licensee or an authorized agent on behalf of a customer.

Updated exemptions to exclude transactions by depository institutions or their subsidiaries/affiliates rather than the broader list of financial institutions.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 28, 2025

Committee

Senate/ to standing committee

upper

Feb 25, 2025

Introduced

Senate/ 1st reading (Introduced)

upper

Feb 25, 2025

Upper · Passed

House/ passed 3rd reading

upper

Feb 19, 2025

Lower · Passed

House Comm - Favorable Recommendation

lower

Feb 12, 2025

Committee

House/ to standing committee

lower

Jan 21, 2025

Introduced

House/ 1st reading (Introduced)

lower

1 primary · 1 co-sponsor