Kansas 2023-2024 Regular Session

Kansas House Bill HB2710

Introduced
2/6/24  
Refer
2/6/24  

Caption

Imposing an excise tax on each transaction by a money transmitter by wire, establishing an income tax credit for excise taxes paid, allowing the state bank commissioner to assess penalties for the nonpayment of such excise tax, providing for the distribution of such excise tax and penalty moneys, establishing the criminal litigation fund, wire transfer fee fund and prosecutor and law enforcement grant fund and creating a misdemeanor crime of unlawful transmission of a wire transfer and providing criminal penalties therefor.

Impact

The bill will notably impact the regulatory landscape surrounding money transmission in Kansas. By establishing strict reporting and payment protocols for money transmitters, it aims to enhance oversight and compliance within this sector. The state bank commissioner will have the authority to assess penalties for noncompliance, potentially increasing accountability but also imposing financial responsibilities on money transmitters. These provisions will significantly alter how businesses engaged in money transmission operate within the state.

Summary

House Bill 2710 imposes an excise tax on each transaction executed by a wire money transmitter, targeting transactions of $500 or less and setting a percentage-based tax for larger amounts. This new tax aims to create a new revenue stream for the state, with specific allocations for various funds including those for criminal litigation, wire transfer fees, and law enforcement grants. It also provides a tax credit against Kansas income tax that reflects any excise taxes paid, allowing taxpayers some relief from the proposed new tax burden.

Contention

A point of contention surrounding HB 2710 is its provision creating a misdemeanor for unlawful transmission of wire transfers, which may disproportionately affect certain populations, particularly those involved in informal financial transactions. Critics argue that the bill may unintentionally criminalize behavior that is commonplace among certain demographics. Moreover, the allocation of tax revenues to specific funds, while aiming to support law enforcement and prosecution, faces scrutiny regarding its effectiveness and potential misuse.

Companion Bills

No companion bills found.

Previously Filed As

KS HB2337

Imposing a fee on each international transaction by a money transmitter by wire, allowing the state bank commissioner to assess penalties for the nonpayment of such fee, providing for the distribution of such fee and penalty moneys, establishing the criminal litigation fund, wire transfer fee fund and prosecutor and law enforcement grant fund and creating a misdemeanor crime of unlawful transmission of a wire transfer and providing criminal penalties therefor.

KS S1440

Adds to existing law to establish an excise tax on international money transmissions and to establish provisions to provide certain credits or refunds of the tax.

KS HF2206

A bill for an act relating to the manufacture, delivery, and possession of marijuana, the licensure of retail marijuana, providing fees, including excise taxes, establishing funds, providing penalties, and including effective date provisions.

KS SB3095

Tax; cut income and grocery taxes, increase fuel excise tax, and adjust distribution of certain fuel and sales taxes.

KS SB788

Alcoholic beverage control; payment of excise tax on beer, wine coolers, and wine, penalties.

KS HB5496

Taxation: excise taxes; excise tax on the purchase of wireless communications devices; require for purchases of devices primarily for the use of individuals under 18 years of age. Creates new act.

KS HB2791

Imposing a 3% excise tax on all sports wagers, distributing the proceeds of such tax to the state school district finance fund and decreasing the statewide property tax levy for school districts by 1.5 mills.

KS A09311

Designates all taxes, interest and penalties collected by the opioid excise tax for the New York state drug treatment and public education fund.

KS S07641

Designates all taxes, interest and penalties collected by the opioid excise tax for the New York state drug treatment and public education fund.

KS SB303

House Substitute for SB 303 by Committee on Taxation - Decreasing the rate of ad valorem tax imposed by a school district, discontinuing certain sales tax exemptions, imposing sales tax on certain sales of lottery tickets, imposing an excise tax on all sports wagers as a rate of 2% of the amount wagered, creating the property tax relief fund and providing for transfers therefrom to the state school district finance fund and creating the sports wagering privilege tax refund fund.

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