Rep. Jennifer Fidler, R-Silverhill, speaks with Rep. Steve Clouse, R-Ozark, on the floor of the Alabama House of Representatives on Feb. 12, 2025 at the Alabama Statehouse in Montgomery, Alabama. HB 297, sponsored by Fidler, passed the House Ways and Means Education Committee along party lines on March 19, 2025.(Brian Lyman/Alabama Reflector)
A bill that would tax international cash wire transfers from Alabama out of the United States passed the House Ways and Means Education Committee along party lines on Wednesday morning.
HB 297, sponsored by Rep. Jennifer Fidler, R-Silverhill, would impose a 4% fee on international transfers, often used by immigrants to support family overseas. The bill does not affect banks that transfer money overseas, only individuals.
“The expected revenue is no less than $10 million, so think about how much wealth was actually leaving our state,” she said. “Not that’s just leaving, but if you are a citizen who pays taxes in the state, you’ll be able to get credit on your taxes.”
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According to the legislation’s fiscal note, 38% of the fee will go to Sheriffs’ Immigration Enforcement and Detainer Fund and 62% will go to the Immigration Assimilation Resources Fund. Those percentages are further divided to agencies in the county where the wire transfer originates.
“1.5% goes to the Office of Prosecution Services to be distributed throughout the sheriffs to help with the illegal immigration issues and the burdens that migrant influxes create in communities,” Filder said.
The law would expire in 2029, which Fidler said would allow officials to evaluate its effectiveness and how much money it will actually bring to the state.
All four Democrats on the committee voted against the bill. Rep. Barbara Drummond, D-Mobile, said she is concerned about the unintended consequences for small businesses.
“It’s not so much where the money will go. I am looking at the unintended consequences to our small businesses and to others,” she said.
Drummond also pointed out that people sending money out of the country could just leave the state, send the money, and come back without being taxed.
“Also our neighboring states are not doing this,” she said. “So what is going to prevent those individuals from going to those states? Money will still be going out of the state.”
Sen. April Weaver, R-Alabaster, filed a version of the legislation earlier this year that would have imposed a $7.50 fee on money sent overseas and a 1.5% fee on transfers over $500. The bill was held after senators noted that revenue bills must start in the Alabama House.
The bill now goes to the full House.
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