A rumored bill that would strip Bluegrass credit unions of the state tax exemption doesn't seem to be going anywhere according to Kentucky Credit Union League President Wendell Lyons.
Lyons said that no bill had been introduced in the current session of the Kentucky Legislature after meeting with State Sen. David Williams (R-KY), president of the Senate, and House Banking Committee Chairman James E. Bruce (D-KY), a powerful representative who's been in elected office since 1964. Lyons said any tax exemption bill would have to be introduced in the House of Representatives and would quickly go nowhere. As Rep. Bruce runs his committee "with an iron hand", Lyons said any tax exemption bill wouldn't even make it to committee.
"If the bankers do their homework, they'll learn it won't get passed," Lyons said.
Lyons said as of last week, Kentucky credit unions were expecting a "slug fest" with bankers regarding the tax exemption, but that sense of urgency has passed after meeting with elected officials. Lyons said he couldn't remember any tax exemption repeal effort since Kentucky credit unions were codified in the mid-1980s. Lyons said the Kentucky CU League will continue to monitor "everything going on" in the legislature. The present session runs for 60 days and will complete legislation in March.
