Right now credit unions are not-for-profit institutions that don’t have to pay corporate excise taxes in Oregon. But House Bill 2486 would change that by imposing an excise tax on certain credit unions. Two other bills would increase regulation on those not-for-profit institutions by mandating community lending standards and disclosure of lending practices.
Banks in Oregon argue the tax breaks credit unions enjoy are undeserved when many of them now compare with small banks in membership and capital.
Scott Burgess, CEO/President of Rivermark Credit Union, says credit unions still deserve tax-exempt status because
as credit-unions, we’re not-for-profit and member-owned. Our focus is on making sure our members have lower loan rates, and higher deposit rates. Banks’ focus may also be on the customer in part, but it’s really going to be in enhancing share value.”
Do you have money in a small bank or credit union? Would you support the legislation being proposed?