Banks and Financial Institutions - As enacted, clarifies that the service of transmitting money from a location originating in this state to a location outside of the United States or its territories is a taxable service and that such a tax is generally levied on the amount of money transmitted; requires revenues generated from such a tax to be allocated to certain funds and purposes. - Amends TCA Title 4; Title 38; Title 39; Title 45; Title 47; Title 49 and Title 67.

HB 2502 classifies international money transfers originating in Tennessee (sent outside the U.S. or its territories) as taxable services for licensed money transmission companies. It requires tax revenues from these transactions to be allocated as follows: 25% to the state general fund, 25% to counties for infrastructure projects based on population, 25% to a new K-12 teacher salary fund, and 25% to a law enforcement training pay supplement. The bill establishes a dedicated "international money transmission tax fund" to manage these revenues, with refunds available for taxpayers who apply between June 1-30 annually. This policy directly affects money transmission businesses operating under Tennessee's Money Transmission Modernization Act.