A new Tennessee law imposing a fee on some international money transfers is an unconstitutional tax on cross-border payments, a financial technology industry group said in a lawsuit challenging the measure.
The law violates the Constitution’s dormant commerce clause, which bars states from taking actions that would inhibit interstate or international commerce, the Financial Technology Association said in a complaint filed Wednesday in the Chancery Court for Davidson County, Tenn.
Davidson County is home to Nashville, the state’s capital.
The measure (HB 2502), signed into law by Gov. Bill Lee (R) last month, imposes a $10 fee for ...