SB 1988 would substantially increase Oklahoma’s fee on certain money transmissions sent outside the United States and U.S. territories. For transactions of $500 or less, the bill raises the fee from $5 to $20; for amounts over $500, it raises the percentage fee from 1% to 4%. The bill keeps the existing framework that requires licensees and their delegates to collect the fee, remit it quarterly to the Oklahoma Tax Commission, and post notice to customers about the related income tax credit.
The bill also reauthorizes and updates the income tax credit tied to these electronic funds transfer fees. It amends the credit statute to apply to tax years 2009 through 2016 and again for 2027 and later tax years, while preserving rules that the credit cannot reduce tax liability below zero and may be carried forward for five years. The effective date is January 1, 2027, so the changes would not take effect immediately if enacted.
Impact
SB 1988 would amend both the Oklahoma Financial Transaction Reporting Act and the state income tax credit statute, increasing the cost of covered international wire transfers and changing how the associated fee is credited back on income tax returns. It would affect money transmitters, wire transmitter businesses, their delegates, the Oklahoma Tax Commission, the State Banking Commissioner, and the Oklahoma State Bureau of Narcotics and Dangerous Drugs Control. The bill also preserves enforcement tools such as license suspension for noncompliance and the ability to pursue surety bond claims and audits.
Sentiment
The bill appears to have had mixed support and ultimately did not advance, failing in the Senate Public Safety Committee on a 4-4 vote. That close vote suggests the proposal was controversial but not overwhelmingly opposed. The available record does not include committee testimony, so the overall sentiment can only be inferred from the narrow committee split and the bill’s failure to pass.
Contention
The main point of contention is the sharp increase in the fee on outbound international money transfers, especially for smaller transactions that would jump from $5 to $20 and for larger transfers that would rise from 1% to 4%. Supporters likely viewed the measure as a way to strengthen enforcement and revenue collection tied to money transmission oversight, while opponents may have objected to the higher cost burden on consumers and businesses that use remittance services. The reauthorization of the income tax credit may have been intended to offset the fee, but the bill still shifts the upfront cost structure and could affect low-income senders and immigrant communities that rely on remittances.
Crimes and punishments; modifying offenses in certain classes of felonies; creating felony offenses for second or subsequent offenses; adding offenses for which registration pursuant to the Sex Offenders Registration Act applies. Effective date.
Crimes and punishments; creating felony offense related to false impersonation of peace officers; broadening scope of allowable seizure. Effective date.