Constitution State Corp. Eyes Charter Conversion
Constitution State Corporate CU said last week it has applied to NCUA and to the state Department of Banking to convert to a state charter. An official with the $2 billion said a federal charter would save the corporate an estimated $100,000 a year in lower supervisory fees charged by NCUA and in state sales taxes, for which the corporate would be exempt under a federal charter. It could also help resolve a continuing dispute over unrelated business income taxes the state charter currently has with the Internal Revenue Service, at least for UBIT liabilities going forward after conversion to tax-exempt shield of the federal charter.
The conversion of the Connecticut corporate follows the recent conversion of Northwest Corporate CU from a state charter.