House Bill 362

AN ACT TO REQUIRE A PERSON LICENSED TO DO BUSINESS AS A MONEY TRANSMISSION BUSINESS TO COLLECT A FEE FOR EACH TRANSACTION; TO AUTHORIZE THE SUSPENSION OF A LICENSE AS A MONEY TRANSMISSION BUSINESS FOR FAILURE TO COMPLY WITH THE MONEY TRANSMISSION FEE REQUIREMENTS; TO EXEMPT CERTAIN TRANSFERS AND CERTAIN FINANCIAL INSTITUTIONS FROM THE MONEY TRANSMISSION FEE REQUIREMENTS; TO CREATE A TAX CREDIT FOR MONEY TRANSMISSION FEES PAID BY A TAXPAYER DURING THE TAX YEAR; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) Except as provided in subsections (8) and (9) of this section, a person licensed to engage in the business of money transmission under the Money Transmission Modernization Act (Sections 75-16-1 through 75-16-87) shall collect a fee of Five Dollars ($5.00) for each transaction not in excess of Five Hundred Dollars ($500.00) and in addition to this fee, an amount equal to one percent (1%) of the amount of each transaction in excess of Five Hundred Dollars ($500.00).

(2) The fee prescribed by subsection (1) of this section must be remitted quarterly to the Department of Revenue on such forms as the department may prescribe for that purpose. Required forms and remittances must be filed with the department on or before the fifteenth day of the month following the close of each calendar quarter.

(3) (a) A licensee shall post a notice on a form prescribed by the Department of Revenue that notifies customers that upon filing an individual income tax return with either a valid social security number or a valid taxpayer identification number, the customer is entitled to an income tax credit equal to the amount of the fee paid by the customer for the transaction.

(b) Before February 1 of each year, every licensee shall provide to the Department of Revenue, on those forms that the department may prescribe for such purpose, a report of all fees paid by the licensee under this section. The report must include the amounts of the fees paid by each transferor pursuant to this act, identifying each transferor by social security number or taxpayer identification number.

(4) The Department of Revenue shall be afforded all provisions currently under law to enforce the provisions of subsection (2) of this section. If a licensee fails to file reports or fails to remit the fee required by subsection (1) of this section, the department may notify the Commissioner of Banking and Consumer Finance of the licensee's failure to comply, and upon receipt of such notification, the Commissioner shall suspend the license of the licensee pursuant to the Money Transmission Modernization Act. The licensee may not reapply for a license until all required reports are filed and all required fee amounts have been remitted.

(5) Upon notice from the Department of Revenue as provided in subsection (4) of this section, the Commissioner of Banking and Consumer Finance may make a claim against the surety bond of the licensee on behalf of the State of Mississippi.

(6) The fee required by subsection (1) of this section applies only to a transaction for which the transferor provides cash, a money order, a cashier's check, or any other similar physical instrument to the licensee, whether or not the transferor holds an account with the licensee, to make an electronic transfer of funds to any person located in a foreign country and identified by the transferor as the authorized recipient of the funds.

(7) The fee required by subsection (1) of this section does not apply to any transfer for which the funds being transferred are:

(a) Withdrawn from an account held in or by a financial institution subject to the requirements under Subchapter II, Chapter 53, Title 31, United States Code. For purposes of this paragraph (a), "financial institution" means:

(i) An insured bank, as defined in Section 3(h) of the Federal Deposit Insurance Act (12 USC Section 1813(h));

(ii) A commercial bank or trust company;

(iii) A private banker;

(iv) An agency or branch of a foreign bank in the United States;

(v) Any credit union;

(vi) A thrift institution;

(vii) A broker or dealer registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934 (15 USC Section 78a et seq.); or

(viii) A broker or dealer in securities or commodities;

(b) Funded with a debit card or a credit card that is issued in the United States; or

SECTION 2. (1) There is allowed against the tax imposed by this chapter a credit equal to the amount of all money transmission fees assessed pursuant to Section 1 of this act and paid by the taxpayer during the tax year. The taxpayer is entitled to the credit upon filing, on forms and schedules prescribed by the Department of Revenue, an income tax return bearing either a valid social security number or taxpayer identification number and attesting the amount of all money transmission fees assessed pursuant to Section 1 of this act and paid by the taxpayer during the tax year. The Department of Revenue shall determine the accuracy of each attestation by reference to the reports submitted by money transmission licensees pursuant to Section 1 of this act.

(2) A tax credit claimed under this section but not used in a taxable year may be carried forward for the five (5) succeeding tax years.

SECTION 3. Section 2 of this act shall be codified as a new section in Chapter 7, Title 27, Mississippi Code of 1972.

SECTION 4. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which Section 2 of this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which Section 2 of this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which Section 2 of this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.

SECTION 5. Sections 2 and 4 of this act shall take effect and be in force from and after January 1, 2026. Sections 1 and 3 of this act shall take effect and be in force from and after July 1, 2026.