Iowa HF2168 establishes a 50% remittance transfer tax on physical instruments used for money transfers.

Iowa HF2168 creates a state remittance transfer tax at a rate of 50% on the gross amount of transfers made by senders in the state using physical instruments like cash or checks. The tax applies to transfers occurring on or after July 1, 2026. The director of revenue will administer the tax, collecting it from remittance transfer providers who must report and remit the tax monthly. The tax does not apply to transfers funded by withdrawals from financial institution accounts. All revenues from the tax will be deposited into the state's general fund.

Iowa HF2168 establishes a 50% remittance transfer tax on physical instruments used for money transfers.

Iowa HF2168 creates a state remittance transfer tax at a rate of 50% on the gross amount of transfers made by senders in the state using physical instruments like cash or checks. The tax applies to transfers occurring on or after July 1, 2026. The director of revenue will administer the tax, collecting it from remittance transfer providers who must report and remit the tax monthly. The tax does not apply to transfers funded by withdrawals from financial institution accounts. All revenues from the tax will be deposited into the state's general fund.