Understanding the New Tax Law
The state of Tennessee will start charging a $10 tax on cross-border payments, plus an additional 2% fee for transactions over $500, under a new law that has sparked criticism from the payments industry. This move is set to take effect soon. The tax applies to all out-of-state remittances.
Breaking news
X Money Launches with High-Yield Savings and Cashback Rewards
Splitit Announces White-Label Credit Card Launch
Billing Friction Puts $12.3 Billion in Auto Loan Payments at Risk
OneSpan Unveils New e‑Signature Features Including Identity Wallets and AI Workflow SupportThe new tax law in Tennessee has raised concerns among payments players. The $10 tax will be levied on all cross-border payments. An extra 2% fee will be charged for transactions exceeding $500. This law is expected to generate revenue for the state.
What Does This Mean for Consumers?
The new tax law may affect consumers who regularly send or receive out-of-state payments. For instance, individuals who support family members in other states may face higher costs. Businesses that process cross-border transactions may also need to adjust their fees.
There are questions about whether this law can be challenged or overturned. Critics argue that the tax unfairly targets out-of-state transactions. However, it remains to be seen whether these concerns will lead to any changes in the law.
Can This Law Be Overturned?
Q: What is the new tax on cross-border payments in Tennessee? A: The new tax is a $10 fee for cross-border payments, plus an additional 2% fee for transactions over $500.
Frequently Asked Questions
Q: When will the new tax law take effect? A: The law is set to take effect soon, although an exact date has not been specified.
Q: Who will be affected by the new tax law? A: Consumers and businesses that send or receive out-of-state payments will be affected by the new tax law.
