TOPEKA, Kan.–This state’s banks and credit unions have been squaring off in the state capitol over legislation that could impose an income tax on state-chartered CUs.
The Committee on Financial Institutions and Insurance is studying whether to fix “what some call a growing disparity between local banks and credit unions,” reported KSNT.
The state’s banks argue they can’t compete with tax-exempt credit unions, with the news outlet stating tax equality “will create jobs and allow banks to give more back to their communities.”
Sen. Robert Olson, chairperson for the Committee on Financial Institutions, said the committee is seeking a resolution.
“We’re going to look at it and if there needs to be a correction or leveling of the playing field, we will move a bill forward,” Olson said, KSNT reported. “If not… this is their opportunity to explain to us if we need to do that or not.”
2 Senate Bills
The committee has been considering two Senate bills, one that would reduce the privilege tax on banks, while the other would require credit unions of more than $100 million in assets to also pay the tax.
Olson said the committee will present a report to the Senate who can then choose to make a decision when session returns in January, KSNT said.