This bill proposes the imposition of a one percent tax on certain remittance transfers sent from Minnesota, as outlined in a new section of the Minnesota Statutes, chapter 295. The bill defines key terms related to remittance transfers, including "remittance transfer," "remittance transfer provider," and "sender," referencing definitions from the United States Code. The tax applies specifically to transfers made with cash or similar instruments, while excluding transfers funded by debit or credit cards or those withdrawn from certain financial accounts.

Additionally, the bill establishes the responsibilities of remittance transfer providers in collecting and remitting the tax to the state, as well as the administrative procedures for tax assessment, refunds, and penalties. It specifies that the tax and any associated interest or penalties are considered a personal debt of the individual responsible for filing the return. The provisions of this bill will take effect for transfers made after June 30, 2026.