Credit unions - state chartered

From the 2024 DOR Tax Exemption Study

82.04.405 - Credit unions - state chartered Description Credit unions chartered under Washington law are exempt from B&O tax. Purpose To provide comparable tax treatment as federally-chartered credit unions. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $50.940 $55.370 $60.190 $65.430 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues but state-chartered credit exemption unions could apply for federal charters. There are benefits to being a state- chartered credit union which might exceed the potential B&O tax incurred. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.194 $0.274 $0.343 Local Taxes $0.000 ($0.441) ($0.504) ($0.527) Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate for use tax mirrors the sales and use taxes growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - The B&O growth rate for state-chartered credit unions is the compound annual growth rate over the last five years. - Large and medium sized state-chartered c