"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!
