Don't Tax My Credit Union!

Credit unions today hold a tax exempt status because they are designed to be run as a not for profit organization. This helps CU members achieve financial success by giving back profits in the form of dividends, and also by offering lower interest rates and fees on loans. But even though credit unions are exempt from paying corporate income taxes, credit unions do still pay taxes like property taxes, sales taxes, and employment taxes.  In Washington there are proposed bills to change these items as a part of an overall tax reform.

Essentially, a tax is added to credit unions, which will trickle down to its members in the form of more fees, higher interest rates, and lower dividends to accommodate the additional expense to the credit unions.

There currently is a ‘Don’t Tax My Credit Union’ initiative taking place to educate current and future members of credit unions of this possible change. Members are also encouraged to write letters to their representatives about the effects of these bills. To learn more about this initiative we have a direct link on our website as well as Facebook for Don’t Tax My Credit Union, www.donttaxmycreditunion.org.

Post by: Lindsey L