"H.B. 187 - CU Update Act": Putting N.C. Credit Unions On the Chopping Block?
... Shock and Ow-w-w!
😎 Why don't we go ahead and try sticking our finger in an electric outlet also!
✅ We've hashed over the "H.187 - CU Update" bill on several occasions. Is CCUL's persistence in the best interest of North Carolina's 3 million+ credit union members? Or is it primarily in CCUL's own interest [see link here]?
Look out! [link] Washington State – The GoWest Credit Union Association - which is CCUL's counterpart on the left coast - is saying Washington
State’s bankers have no reason to celebrate a bill that taxes credit
unions that purchase banks in the state. The approved legislation that removes the business and occupation (B&O) tax
exemption that state-chartered credit unions currently have in place
when acquiring community banks. The tax would be 1.2% of the credit
union’s gross income, with supporters of the legislation saying it
closes a “tax loophole by making credit unions that acquire banks
subject to the same B&O tax as banks.”
Ms. Leigh Brady, CEO of SECU, has publicly stated that being taxed at the federal level would cost SECU members $40 million per year forever - not a minor cost to the membership. With the Washington State business and occupation state tax, the CU tax debate has now also gone "local" - the various state taxation exemptions could be "put in play".
It's been made clear that not all N.C. credit unions support H.187. Why risk a minor "update" in the midst of such great national - and now local - uncertainty [see link on national tax/NCUA]?
🐪🐪🐪 Beware of Camel Noses: "The term refers
to an alleged Arab proverb that if a camel is allowed to get its nose inside of a tent, it will be impossible to prevent the rest of it from entering. A small,
seemingly innocuous act - H.187? - or decision that will lead to much larger, more
serious, and less desirable consequences down the line." 🐪🐪🐪
$40 million a year... lets hope our local bankers can't read!
So has SECU acquired a bank no one told us about?
ReplyDelete9:50 am Good question! Personally, have never heard of a "no proposal proposal" for SECU to buy a bank.
ReplyDeleteNo formal proposal to merge with a CU, either.
ReplyDelete"An Escalating Concern"??
ReplyDeleteIn case you were wondering if all this tax talk might be real, see email below dated 4/30/2025:
"Dear SECU Advisory Board members,"
"I want to bring your attention to an issue the credit union industry is facing – the issue of federal taxation. It is not new to our industry, but in our current legislative environment, it is an escalating concern."
"Our advocacy partners, America’s Credit Unions and the Carolinas Credit Union League (CCUL), are leading the industry charge to ensure credit union members are aware of and engaged in measures to protect against federal taxation. To assist in those efforts, they established an important initiative called “Don’t Tax My Credit Union.”
"Please take a few moments to view this information and learn more about the potential impacts of this issue and steps you can take to help us protect against federal taxation for credit unions."
"We appreciate your support of our member-owned cooperative. Together, we can make a difference!"
Leigh-Brady
President & CEO