Maryland CUs Probe Impact of New Regulation

COLUMBIA, Md.–The Maryland and District of Columbia Credit Union Association will be meeting this afternoon to discuss how a recent ruling regarding where property taxes can be paid will impact its member credit unions, according to Maureen McAtee, vice president of Maryland governmental affairs, for the MDDCCUA. The ruling, which could have statewide impact, is causing residents in area towns to be notified by local officials that credit unions no longer can accept their property tax payments. That’s after they discovered there was no provision for credit unions in the state statute allowing banks and S&Ls to collect tax payments. The Allegany County finance director asked for and received a legal opinion from the state treasurer on whether using credit unions is permissible and was told they are not. At least two credit unions serve this rural area in far western Maryland, but bank branches are sparsely located. County officials said it will take an act by the Maryland legislature to change the law.