Undocumented immigrants to be charged wire transfer fee under proposed legislation

Sen. Paul Scott filed legislation Thursday to charge individuals a fee on international wire transactions who do not present valid personal identification. The Duncan Republican said he hopes the bill will cut down on the number of undocumented immigrants sending untaxed dollars out of the state as well as address drug money being funneled to other countries.

“We have a large population of undocumented immigrants in Oklahoma. This bill will help the state collect a portion of their untaxed dollars and hopefully encourage them to seek citizenship,” said Scott. “Drug cartels and gangs are also transferring thousands, and possibly millions, of dollars in illegal funds across the border and to other countries. This is an effort to slow that practice and deter illegal activities in Oklahoma while also ensuring the state gets some financial benefit.”

Senate Bill 547 defines a valid personal identification as an unexpired state-issued driver license, permit or temporary permit or identification card issued by the Department of Public Safety, or any unexpired federally-issued document from the U.S. Customs and Immigration Service authorizing a lawful presence.

The legislation would authorize money transmission licensees to collect a $10 fee for transactions of up to $500 and a one percent fee for transactions over $500. The fees would be remitted quarterly to the Oklahoma Tax Commission (OTC) and deposited into the General Revenue Fund.

Under SB 547, the OTC could suspend the license of any licensee of a money transmission or wire transmitter business that failed to file reports or remit the fee. The licensee could not reapply for a license until they had filed all of the required reports and remitted the fees.

The legislative session begins on Monday, February 6.