Credit unions - federal chartered

From the 2024 DOR Tax Exemption Study

82.04.405 - Credit unions - federal chartered Description Credit unions chartered under federal law are exempt from B&O tax. Purpose The Federal Credit Union Act prohibits state taxation of federally chartered credit unions. This exemption was created when the B&O tax was extended to financial institutions. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $4.000 $4.320 $4.660 $5.030 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would not increase revenues because federal law exemption prohibits state taxation of federal credit unions. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - No revenue impact because federal law prohibits state taxation of federal credit unions. - Includes credit union taxpayer savings from loans as that revenue is not included in the first mortgage B&O tax deduction. - Growth rate mirrors the compound annual growth rate for federally chartered credit union gross income from 2014 to 2022. Data Sources - National Credit Union Administration, Annual Financial Performanc