Lawmakers Exempt CUs From TaxBill
AUSTIN, Texas - (03/15/05) -- The House voted Monday to exempt thestate's 225 state chartered credit unions from a business tax billthat would replace the current franchise tax system. Under theproposed bill debated over the last week, businesses would have thechoice of paying a tax on payrolls on the franchise tax, whichcredit unions and other non-profits are currently exempt from. Theamendment approved by the House, one of about 50 added during theday-long debate, would also create an exemption for credit unionsand other 501 (c) organizations from the new business tax,according to Melodie Stegall, a lobbyist for the CU LegislativeCoalition, which represents 22 credit unions before the statelegislature. "Of course, there are so many amendments that couldstill shoot us out of the saddle," Stegall told The Credit UnionJournal last night. Once the bill is passed by the House it must beapproved by the Senate too.