MADISON, Wis.–The Wisconsin Bankers Association and the Wisconsin Credit Union League have been engaged in a public debate over acquisitions of banks by credit unions.
The disagreement was again brought into the limelight following Summit Credit Union’s announcement it plans to buy Commerce State Bank in West Bend, Wis.
Calling it a “concerning trend,” the WBA issued a statement that taxpayers in the state “should be very concerned about this transaction,” according to WISPolitics.com.
The bankers’ trade group claimed the state will lose out on $1 million in annual future tax revenues because of the credit union’s income tax-exempt status.
The WBA said in a statement that the $6-billion Summit CU purchase of the $837-million Commerce State is the sixth by a credit union in Wisconsin in the last decade, the bankers group said the trend is being driven by “large, growth-oriented credit unions.”
‘Broad Support’ for CUs
But Brett Thompson, president and CEO of the Wisconsin Credit Union League, told WISPolitics.com that a poll in 2021 found broad support for credit unions stepping in if a community bank leaves a community.
“To what end will the WBA continue to complain about credit unions’ tax status — despite its confirmation over decades of Congressional tax reform, strong consumer support (80% of Wisconsinites support the current tax status), and undeniable financial benefit to members,” Thompson said in an emailed statement to WISPolitics.com. “The facts tell the real story.”
Thompson pointed the publication toward the results of a poll in August 2021 that found 72% of respondents said credit unions offer the best deal for consumers, compared to 13% for banks. The poll was conducted by Public Opinion Strategies and tapped 600 registered Wisconsin voters by phone, WISPolitics reported.
But the report stated the Wisconsin bankers argued large credit unions are “becoming indistinguishable from tax-paying banks,” and calls for the public and elected officials to question the need for their tax benefits.
“Why should the 14 Wisconsin-based credit unions over $1 billion in asset size pay nothing in state income tax to support social services, law enforcement, schools, and other public services?” WBA said in its release. “Individuals, families, and tax-paying businesses are left to shoulder these growing expenses.”
CUs ‘Do Pay Taxes’
In a separate statement provided to WisBusiness.com, Summit Credit Union President and CEO Kim Sponem noted credit unions “do pay taxes,” including sales tax, employer-related taxes and property taxes.
“Commerce State Bank and its shareholders have the freedom to decide whom they want to partner with and what organization will best benefit their clients, employees and communities,” she told WISPolitics.com. “We are thrilled Commerce State Bank chose Summit Credit Union.”
Don’t Forget to Check the Spam Folder!
Don’t forget to check your Spam/Junk email folder if you didn’t receive your free, popular and daily CUToday.info news headlines on Monday.
And if you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time.
CUToday.info has received very positive response from readers following the move to an improved provider of the daily headlines, but many also noted they did need to go to their Spam/Junk folder and mark it as safe.
The new email solution has not only improved every reader’s delivery experience, but it also features a fresh, new format that is easy to read, especially on mobile devices.
Please note and/or make your IT department or email administrator aware the emails will be coming from the domains CUTodayinfo.com and CUTodayinfoReply.com.