Tex. Legislature Goes Home; Tax Status Safe
The state legislature adjourned last month with the House and Senate failing to reach agreement on a tax reform bill, thus ending the threat to the credit union tax exemption for another year.
Gov. Rick Perry could decide to call a special session to forge agreement on a tax bill but the issue is expected to carry over again to next year when the courts may force lawmakers to pass a reform package to fund state aid to schools, according to Allison Castle, a spokesperson for the Texas CU League.
"We're fine, right now. Both the governor and lieutenant governor have vowed to support our tax exemption. So the situation is status quo," Castle told The Credit Union Journal.
The tax exemption was threatened in the beginning of the 140-day session when lawmakers suggested closing loopholes and eliminating exemptions, including the credit union exemption, to expand the tax base, but that proposal was rejected by the House and wasn't even considered by the Senate.