Credit unions - state chartered conversion

From the 2024 DOR Tax Exemption Study

82.12.860 - Credit unions - state chartered conversion Description Tangible personal property, digital goods and services, certain other services defined as retail sales, or extended warranties acquired by a state-chartered credit union as a result of a merger with or conversion from a federal, out-of-state, or foreign credit union are exempt for use tax. Purpose Enables state-charted credit unions to compete with federally chartered credit unions. There are benefits to being a state-chartered credit union which might exceed the potential use tax incurred. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.154 $0.154 $0.154 $0.154 Local Taxes $0.069 $0.069 $0.069 $0.069 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.141 $0.154 $0.154 Local Taxes $0.000 $0.064 $0.069 $0.069 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Zero growth rate due to irregular annual impact. - Local revenue estimates use the statewide average local use tax rate of 2.92%. Data Sou