Tax On Out-Of-State-Based Credit Unions Raised During Montana House Debate

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A bill that updates the Montana Credit Union Act has passed the Montana House, but only after objections were raised to the tax status of credit unions. House Bill 319, which clarified and updated portions of the state act, passed 92-3, but during debate over the bill, which includes provisions related to out-of-state CUs, Rep. Dee Brown (R-Hungry Horse), who said she is a member of two credit unions, pointed to the "different tax structure" of credit unions and objected to out-of-state credit unions doing business in Montana and not paying (income) taxes. Montana CU Network chief lobbyist Bob Pyfer credited the bill's sponsor, Rep. Bob Lawson (R-Whitefish), for handling the objection, by noting that no out-of-state credit unions are presently seeking to branch into Montana and that the bill simply seeks to provide for this contingency. Lawson is also chairman of the credit committee for Whitefish Credit Union.

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