Attorneys for the Pennsylvania Banking Department and the state's Department of Banking told the Pennsylvania Supreme Court that bankers ought to end their legal challenge to credit unions' tax exemption and pursue legislation instead.
"If changes should be made" to the tax exemption, "then the change should be made by the General Assembly," Linda Carroll, counsel for the Department of Banking, said during Tuesday's argument before the court.
Raymond Pepe, an attorney for the Pennsylvania Bankers Association, asked the court to overturn a Commonwealth Court ruling and order the lower court to hear the group's argument that a 1968 amendment to the state's constitution did not allow the General Assembly to approve the tax exemption for credit unions.
Both parties agreed that the bankers' main argument in the matter is that the exemption violates the state constitution's uniformity clause, because it discriminates in favor of one group of competitors.
The lower court is still considering that portion of the case, but the Supreme Court is expected to review it eventually, too.
