This bill introduces a new excise tax on international money transmissions originating in Idaho, as outlined in the newly added Section 26-2929 of Chapter 29, Title 26, Idaho Code. The tax will be imposed on the sender of each transaction, with a fee of $5 for the first $500 and an additional 4% on amounts exceeding that threshold. Licensees handling these transactions are responsible for collecting the tax and providing receipts to senders, which will also inform them of potential tax credits or refunds available under the new Section 63-3029E. The bill specifies that the tax will not apply to certain transactions where the sender can prove legal residency in the U.S.

Additionally, Section 63-3029E establishes a refundable income tax credit for individuals who have paid the international money transmission excise tax, allowing them to claim a refund if their tax liability is less than the credit amount. The bill mandates that applications for refunds must be submitted within three years of the tax payment or the due date of the tax return. The legislation is set to take effect on July 1, 2026, and includes provisions for the state tax commission to implement necessary rules and procedures for compliance and enforcement.