Background: SB77 would impose a new fee on international wire transfers originating from Alabama. Under this bill, money transmission businesses would be required to collect a $7.50 fee on international transfers up to $500, plus an additional 1.5% on amounts exceeding $500. The funds collected would be deposited into the Sheriffs' Immigration Enforcement and Detainer Fund, which would distribute money to county sheriffs to offset costs associated with enforcing immigration laws and detaining individuals for immigration violations.
The bill also includes a provision allowing taxpayers to claim a tax credit equal to the amount of transfer fees they paid, provided they file an Alabama income tax return with a valid Social Security number or taxpayer identification number. However, this tax credit structure effectively excludes many immigrants, including undocumented individuals, from recouping the costs of these fees.
Our Position: We oppose SB77. This bill unfairly targets immigrant communities by imposing additional financial barriers on individuals sending money to family members abroad. Immigrants contribute significantly to Alabama’s economy and tax base, and this legislation serves as an unnecessary and punitive measure under the guise of immigration enforcement. Instead of imposing financial penalties on immigrant workers, the state should focus on policies that promote economic equity and fairness.
Additionally, we reject the argument that “immigrants don’t pay their fair share.” Studies show that undocumented immigrants contributed nearly $100 billion in federal, state, and local taxes in 2022, despite being excluded from most public programs their tax dollars help fund.
