Quixotic Bid for CU Tax

ALBANY, N.Y. – In what can described as a long-shot bid for a credit union tax, a bill was introduced in the State Senate that would apply a state tax on federally chartered credit unions. In introducing his bill, Sen. Thomas Morahan, R-Westchester, explained, “Many federal credit unions have become very large with hundreds of million of dollars in assets, often equal in size to regular banks. However, credit unions are not required to pay the same taxes that regular banks are. This bill includes insured federal credit unions among the financial institutions which must pay taxes.” However, all federally chartered credit unions are exempt from state taxes under the Federal CU Act, therefore, even if the bill passes it would like be found inapplicable.