This bill establishes a new remittance transfer tax in Iowa, imposing a tax rate of 50 percent on the gross amount of remittance transfers made by senders within the state. The tax applies specifically to transfers initiated with cash, money orders, cashier's checks, or similar physical instruments, and does not apply to transfers funded by accounts held at financial institutions. The sender is responsible for paying the tax, which must be collected by the remittance transfer provider and remitted to the Department of Revenue on a monthly basis. If the tax is not collected at the time of the transfer, the provider is required to pay it.

The bill also outlines the administrative responsibilities of the Director of Revenue, who will manage the remittance transfer tax in conjunction with existing state sales and use tax laws. It mandates that all revenues generated from this tax be deposited into the state's general fund. The provisions of this bill will take effect for remittance transfers occurring on or after July 1, 2026.