Families and businesses could see higher fees on money sent or received from abroad through wire transfers under a bill advanced by the Iowa House.
The proposal (HF 2750) places a $5 fee on transactions that are $500 or less and a 2% fee on transactions over that amount. Part of the collected fees would go toward combatting human trafficking and a school security fund, while 70% of the money would go to prison infrastructure.
Rep. Mike Vondran, R-Davenport, said the tax will help the state address overcrowding in prisons and support school security infrastructure.
“This gives us that opportunity to once again make a commitment to the educational needs of our state and support our school districts across the state,” Vondran said.
Rep. Aime Wichtendahl, D-Hiawatha, said the bill is important but still raises taxes on Iowans. She voted against it.
“This is a tax that will fall on Iowa workers who are providing for their families,” Wichtendahl said. “And this is a tax on hobbyists and collectors, and this is a tax on businesses, who will raise rates with their suppliers.”
The bill passed 60-32 and next heads to the Senate.