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Subcommittee advances bill to impose fee on wire transfers leaving Tennessee
Summary
Subcommittee advanced HB2502, a proposal to assess a $10 fee plus 2% on amounts over $500 for wire transfers sent from Tennessee to foreign countries. Sponsor projected roughly $155 million in recurring revenue; members pressed for clarity on whether large businesses would be affected.
The Banking & Consumer Affairs Subcommittee advanced House Bill 2502, a measure that would impose a fee on funds wired from Tennessee to foreign countries. The presenter, running the bill on behalf of Speaker Sexton, said the Department of Financial Institutions estimates about 16 million transfers totaling $5.5 billion are initiated in Tennessee each year and argued the fee would provide recurring revenue.
"This bill allows for taxpayers to apply for a refund for the $5,500,000,000 leaving the state untaxed each year," the presenter said, describing the proposal as a $10 per-transaction fee plus 2% on amounts over $500 and projecting "over $155,000,000 per year in recurring revenue." Representative Hemmer and other members questioned whether the measure would unintentionally tax corporate flows, citing foreign direct investment and employers with cross-border payments.
Sponsor representatives repeatedly stated the intent is to target personal wire transfers, not large corporate transactions, and said they would work to clarify draft language. Chairman closed debate and the clerk recorded a 6–1 vote to move HB2502 on to the Commerce Committee.
