Description – A Tax on Transferring Money
HB 12 is a tax on transferring money. Section 1 essentially says that any money transmission will assess a tax of ten dollars for any transfer of less than five hundred dollars. Anything over five hundred dollars would require a tax of two percent. This money goes directly into the state treasury.
Institutions taking in this tax are allowed to keep five percent of the value of all such taxes as payment for collecting the money in the first place. They are only allowed to keep the five percent if a receipt is given.
Section 2 outlines the method for getting a tax credit for any fees paid by a taxpayer. It appears that there is a dollar for dollar tax credit allowed for any fees paid. That dollar for dollar tax credit may also exceed the taxpayers tax liability.
A lot to this bill doesn’t make sense. It appears to be a loan given to the government by people doing money transfers. And it’s only a loan if the person transferring the money is knowledgeable enough to actually know that they qualify for a tax credit. That being said, this author will always be against new taxes. Forcefully taking money from people for any reason is immoral. The fact that this is eligible for a dollar for dollar tax credit also seems fishy. It seems like it is a tax that will disproportionately effect poorer groups as they will not be as knowledgeable about their rights come tax time. We here at Liberty in Georgia are against this bill.