PARKERSBURG, W.Va. - For now, the threat of credit union taxation in this state has been checked, according to the West Virginia Credit Union League, which recently responded to the city of Charleston’s proposal to place a business and occupation (B&O) tax on credit union earnings.
Following the proposal, made by the city as part of the state’s Municipal Home Rule Pilot Program, League President Kenneth R. Watts sent a letter to City Manager David D. Molgaard and other city officials outlining why taxing credit unions would be a violation of the state and federal codes.
“I don’t think they realized when that idea was floated what the federal and state statutes had to say,” explained Rich Schaffer, VP of the league. “Right now, it appears to be a back-burner item (for the city). What we know from our latest communication with the city is that the B&O tax is under further study and no action is being taken at this time.”
Did the letter from Watts have an impact? “Yes, I think so,” Schaffer said. “It informed the city of the legal implications the tax would have. But it took a very positive tone.”
The Home Rule Commission had approved the city’s plans, but the matter did not go before city council before the league sent its communication. The Home Rule Pilot Program is part of state legislation giving five cities permission to find new ways to tax locally.
“No one has communicated to us that this is a dead issue,” Schaffer added. “It’s something we will continue to monitor. We are not going to take (the city) at their word that this isn’t something that could come up on an agenda in the near term. If it comes up again, we will be there to provide the credit union point of view.”(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com http://www.sourcemedia.com
