Lawmakers Table Denoument In Bank-CUWars
SALT LAKE CITY - (02/02/05) -- The House Revenue and TaxationCommittee agreed Tuesday afternoon to delay action on a bill aimedat ending the decade-old war between banks and credit unions--byeliminating state taxes on banks to put them on their long-sought'level playing field' with credit unions. The taxation committeeagreed to hold the bill until the House votes later this week on abroader package endorsed by Gov. Huntsman to phase out thecorporate income tax on banks and all companies over five years.The banking lobby, though supportive of tax relief efforts, saidelimination of state levies is not likely to end their enmity withcredit unions because of the continued exemption on federal taxesfor credit unions. Howard Headlee, president of the Utah BankersAssociation, said the bankers will continue to support alegislative resolution asking Congress to, among other things, letstates tax federally chartered credit unions. "You're halfwaythere. It's a step in the right direction," Headlee told The CreditUnion Journal about the legislature's tax relief proposals. "Butthe inequity based on the exemption from federal income taxes stillexists."