HB 149: Enact Withholding Illegal Revenue Entering Drug Markets WIRED Act
This bill imposes a transfer fee on money transmissions in the state, with the revenue generated going towards local law enforcement. The fee is three percent of the transaction amount and must be billed to the customer, who will receive an itemized receipt. A quarterly report must be filed with the superintendent, and a discount is available for timely payment. The revenue will be used to fund grants to law enforcement agencies for investigating human trafficking and drug trafficking. The grants will be awarded based on the size of the jurisdiction and the effectiveness of the agency's efforts. A tax credit is allowed for taxpayers who pay transfer fees, with the credit not exceeding $300 per year. The credit applies only to transactions where the taxpayer is the customer of the licensee or authorized delegate. The tax commissioner will require proof of payment of transfer fees as a co…
| Mar. 05, 2025 | Referred to committee: Financial Institutions |
| Mar. 04, 2025 | Introduced |
As Introduced
136th General Assembly Regular Session H. B. No. 149 2025-2026 Representatives King, Miller, K. Cosponsors: Representatives Hall, T., Williams, Click, Gross, Ritter, Johnson, Daniels, Lear, Klopfenstein
A B I L L
To amend section 5747.98 and to enact sections 1
1315.131, 5502.80, and 5747.87 of the Revised 2
Code to levy a transfer fee on money 3
transmissions, to authorize an income tax credit 4
based on the amount of the transfer fees paid, 5
and to name this act Ohio's Withholding Illegal 6
Revenue Entering Drug Markets (WIRED) Act. 7
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 5747.98 be amended and sections 8
1315.131, 5502.80, and 5747.87 of the Revised Code be enacted to 9
read as follows: 10
Sec. 1315.131. (A) To provide revenue for local law 11
enforcement, a transfer fee is imposed on licensees and 12
authorized delegates that transmit money from a customer in this 13
state. The amount of the transfer fee equals three per cent of 14
the amount of money, or its equivalent, transmitted by the 15
licensee or authorized delegate in the transaction. 16
(B) A licensee or authorized delegate may bill or invoice
H. B. No. 149 As Introduced
the transfer fee imposed by this section to the customer from 18
which the money is transmitted, but shall provide that customer 19
with an itemized receipt that lists the amount of the transfer 20
fee as a separate line item from any other amounts charged by 21
the licensee or authorized delegate in connection with the 22
transaction. 23
(C) A person that transmitted money from a customer in 24
this state shall file a quarterly report and pay the aggregate 25
amount of transfer fees due on all such transactions during the 26
previous quarter to the superintendent of financial institutions 27
in a form and manner prescribed by the superintendent. If the 28
report is filed and the amount of the transfer fees shown on the 29
report to be due is paid on or before the date the report is 30
required to be filed, the person is entitled to a discount equal 31
to three-fourths of one per cent of the amount otherwise shown 32
to be due on the report. 33
(D) The withholding illegal revenue entering drug markets fund is created in the state treasury. All transfer fees collected by the superintendent under this section shall be deposited into the fund. All investment earnings of the fund shall be credited to the fund. The superintendent and the director of public safety shall use the moneys in the fund to make transfers as required by section 5747.87 of the Revised Code and for the purposes described in section 5502.80 of the Revised Code.
(E) Every licensee and authorized delegate that transfers 43
money from customers in this state shall conspicuously post a 44
notice in the licensee's or authorized delegate's place of 45
business, in a form prescribed by the superintendent, that 46
informs customers of the tax credit authorized by section 47
H. B. No. 149 As Introduced
5747.87 of the Revised Code for transfer fees imposed by this 48
section that are billed or invoiced to the customer. 49
Sec. 5502.80. (A) As used in this section, "law 50
enforcement agency" means an organized police department, 51
sheriff's office, or marshal's office of any county, municipal 52
corporation, or township. 53
(B) The department of public safety shall use moneys 54
deposited to the withholding illegal revenue entering drug 55
markets fund, under section 1315.131 of the Revised Code, to 56
award grants to law enforcement agencies to defray costs 57
incurred by those agencies for investigation of human 58
trafficking and drug trafficking, and enforcement of related 59
laws. 60
(C) The director of public safety, in administering the 61
grants, shall do both of the following: 62
(1) Ensure that funds are distributed equitably to 63
jurisdictions throughout the state and among law enforcement 64
agencies of varying sizes. 65
(2) Allow more than one law enforcement agency to apply 66
collectively for a grant to fund cooperative efforts to 67
investigate human trafficking and drug trafficking and enforce 68
related laws, including efforts conducted through a drug task 69
force, as defined in section 5502.68 of the Revised Code. 70
(D) The director of public safety, in consultation with 71
the superintendent of financial institutions, shall adopt rules 72
under Chapter 119. of the Revised Code to establish guidelines 73
for the grant program and for administering the fund and to 74
establish application procedures for law enforcement agencies 75
seeking a grant under this section. 76
H. B. No. 149 As Introduced
Sec. 5747.87. (A) As used in this section, "authorized 77
delegate," "licensee," and "transmit money" have the same 78
meanings as in section 1315.01 of the Revised Code. 79
(B) A refundable credit is allowed against a taxpayer's 80
aggregate tax liability under section 5747.02 of the Revised 81
Code. The credit shall equal the amount of transfer fees imposed 82
by section 1315.131 of the Revised Code that are billed or 83
invoiced to, and paid by, a taxpayer in the taxable year, but 84
the amount of credit allowed shall not exceed, for any taxable 85
year, three hundred dollars, including any credit amounts 86
apportioned or allocated to the taxpayer by a pass-through 87
entity. The credit applies only to transfer fees paid for 88
transactions in which the taxpayer is the customer of a licensee 89
or authorized delegate. The credit is not available for transfer 90
fees paid by a taxpayer acting as a licensee or authorized 91
delegate by transmitting money on behalf of another customer. 92
The credit shall be claimed in the order required under 93
section 5747.98 of the Revised Code. If the amount of the credit 94
under this section exceeds the aggregate amount of tax otherwise 95
due under section 5747.02 of the Revised Code after deduction of 96
all other credits in that order, the taxpayer is entitled to a 97
refund of the excess. 98
If the taxpayer is a direct or indirect investor in a 99
pass-through entity that paid transfer fees under section 100
1315.131 of the Revised Code during the taxpayer's taxable year 101
that would have qualified the entity for the credit if the 102
entity was a taxpayer, the taxpayer may claim its proportionate 103
or distributive share of the credit allowed under this section. 104
(C) The tax commissioner may require the taxpayer to 105
furnish proof of payment of transfer fees under section 1315.131 106
H. B. No. 149 As Introduced
| the Revised Code as a condition of obtaining the credit ithorized under this section. | 107 108 |
| (D) On or before the thirtieth day of July of each year, le tax commissioner shall certify to the superintendent of the | 109 110 |
| 111 | |
| nd management the amount of tax credits claimed under this ection in the preceding fiscal year. Within fifteen days after | 112 113 |
| eceipt of this certification, the director of budget and | 114 |
| anagement shall transfer money equal to the certified amount to | 115 |
| ne general revenue fund from the withholding illegal revenue | 116 |
| ntering drug markets fund created in section 1315.13l of the | 117 |
| evised Code. | 118 |
| Sec. 5747.98. (A) To provide a uniform procedure for | |
| 119 | |
| 47.02 of the Revised Code, a taxpayer shall claim any credits | 120 |
| which the taxpayer is entitled in the following order: | 121 122 |
| Either the retirement income credit under division (B) of | 123 |
| ection 5747.055 of the RevisedCode or the lump sum retirement | 124 |
| icome credits under divisions (C)，(D)， and (E）of that ection; | 125 126 |
| Either the senior citizen credit under division (F）of ection 5747.055 of the Revised Code or the lump sum | 127 128 |
| stribution credit under division (G) of that section; | 129 |
| The dependent care credit under section 5747.054 of the evisedCode; | 130 131 |
| The credit for displaced workers who pay for job training ider section 5747.27 of the Revised Code; | 132 |
| 133 | |
| The campaign contribution credit under section 5747.29 of | 134 |
| ne Revised Code; | 135 |
H. B. No. 149 As Introduced
The twenty-dollar personal exemption credit under section 136
5747.022 of the Revised Code; 137
The joint filing credit under division (G) (E) of section 138
5747.05 of the Revised Code; 139
The earned income credit under section 5747.71 of the 140
Revised Code; 141
The nonrefundable credit for education expenses under 142
section 5747.72 of the Revised Code; 143
The nonrefundable credit for donations to scholarship 144
granting organizations under section 5747.73 of the Revised 145
Code; 146
The nonrefundable credit for tuition paid to a 147
nonchartered nonpublic school under section 5747.75 of the 148
Revised Code; 149
The nonrefundable vocational job credit under section 150
5747.057 of the Revised Code; 151
The nonrefundable job retention credit under division (B) 152
of section 5747.058 of the Revised Code; 153
The enterprise zone credit under section 5709.66 of the 154
Revised Code; 155
The credit for beginning farmers who participate in a 156
financial management program under division (B) of section 157
5747.77 of the Revised Code; 158
The credit for commercial vehicle operator training 159
expenses under section 5747.82 of the Revised Code; 160
The nonrefundable welcome home Ohio (WHO) program credit 161
under section 122.633 of the Revised Code; 162
H. B. No. 149 As Introduced
The credit for selling or renting agricultural assets to 163
beginning farmers under division (A) of section 5747.77 of the 164
Revised Code; 165
The credit for purchases of qualifying grape production 166
property under section 5747.28 of the Revised Code; 167
The small business investment credit under section 5747.81 168
of the Revised Code; 169
The nonrefundable lead abatement credit under section 170
5747.26 of the Revised Code; 171
The opportunity zone investment credit under section 172
122.84 of the Revised Code; 173
The enterprise zone credits under section 5709.65 of the 174
Revised Code; 175
The research and development credit under section 5747.331 176
of the Revised Code; 177
The credit for rehabilitating a historic building under 178
section 5747.76 of the Revised Code; 179
The nonrefundable Ohio low-income housing tax credit under 180
section 5747.83 of the Revised Code; 181
The nonrefundable affordable single-family home credit 182
under section 5747.84 of the Revised Code; 183
The nonresident credit under division (A) of section 184
5747.05 of the Revised Code; 185
The credit for a resident's out-of-state income under 186
division (B) of section 5747.05 of the Revised Code; 187
The refundable motion picture and broadway theatrical 188
production credit under section 5747.66 of the Revised Code; 189
H. B. No. 149 As Introduced
The refundable credit for film and theater capital 190
improvement projects under section 5747.67 of the Revised Code; 191
The refundable jobs creation credit or job retention 192
credit under division (A) of section 5747.058 of the Revised 193
Code; 194
The refundable credit for taxes paid by a qualifying 195
entity granted under section 5747.059 of the Revised Code; 196
The refundable credits for taxes paid by a qualifying 197
pass-through entity granted under division (I) of section 198
5747.08 of the Revised Code; 199
The refundable credit under section 5747.80 of the Revised 200
Code for losses on loans made to the Ohio venture capital 201
program under sections 150.01 to 150.10 of the Revised Code; 202
The refundable credit for rehabilitating a historic 203
building under section 5747.76 of the Revised Code; 204
The refundable credit under section 5747.39 of the Revised 205
Code for taxes levied under section 5747.38 of the Revised Code 206
paid by an electing pass-through entity. ; 207
The refundable credit under section 5747.87 of the Revised 208
Code for the transfer fees paid under section 1315.131 of the 209
Revised Code. 210
(B) For any credit, except the refundable credits 211
enumerated in this section and the credit granted under division 212
(H) of section 5747.08 of the Revised Code, the amount of the 213
credit for a taxable year shall not exceed the taxpayer's 214
aggregate amount of tax due under section 5747.02 of the Revised 215
Code, after allowing for any other credit that precedes it in 216
the order required under this section. Any excess amount of a 217
H. B. No. 149 As Introduced
particular credit may be carried forward if authorized under the 218
section creating that credit. Nothing in this chapter shall be 219
construed to allow a taxpayer to claim, directly or indirectly, 220
a credit more than once for a taxable year. 221
Section 2. That existing section 5747.98 of the Revised 222
Code is hereby repealed. 223
Section 3. The enactment by this act of section 5747.87 of 224
the Revised Code applies to taxable years ending on or after the 225
effective date of this section. 226
Section 4. The transfer fee imposed by section 1315.131 of 227
the Revised Code, as enacted by this act, applies to 228
transactions on and after the first day of the first month that 229
begins after the effective date of this section. 230
Section 5. This act shall be known as Ohio's Withholding 231
Illegal Revenue Entering Drug Markets (WIRED) Act. 232