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Representative Hill advances fee on transfers sent from Tennessee to foreign countries
Summary
The committee attached an amendment exempting traditional financial institutions and sent House Bill 2502 to the Finance Committee. The measure would impose a $10 per-transaction fee plus 2% on amounts over $500 for transfers sent directly to foreign countries, while excluding bank-mediated transfers.
Representative Hill told the Commerce Full Committee that House Bill 2502 and an attached amendment would create a fee on funds leaving Tennessee for foreign countries, saying: "The fee would be $10 per transaction and 2% of funds over $500." He cited Department of Financial Institutions figures that “over 16,000 transfers totaling $5,500,000,000 are initiated in Tennessee and transmitted to a foreign country.” Hill said the amendment exempts traditional financial institutions and government agencies to protect routine bank transfers.
Members asked how the measure would affect service members and family remittances. Leader Camper warned the fee could add costs when families send money to deployed service members and said he would follow up with the financial-institutions commissioner to identify the affected providers. Representative Henry asked whether app-based services such as Venmo or PayPal would be covered; Hill replied that transfers routed through a banking institution are exempt but standalone money-transfer services primarily used for out-of-country transfers would be subject to the fee.
The committee approved attaching the amendment and voted to send HB2502 to the Finance Committee. The clerk recorded 17 ayes and 4 nays; Chair Kevin Vaughn announced, “With that house bill 2502 is off to finance.”
