CREDIT UNION TIMES, Vol. 3, No. 45, November 11, 1992
Looking back nine years ago finds California credit unions unhappy with the California Franchise Tax Board ruling that state-chartered credit unions must pay the equivalent of a 7% gross income tax retroactive to 1988. However, California League Senior Vice President Laura Porter urged credit unions not to overreact. "I think our first assessment of the situation made us more frightened than we needed to be," said Porter. "As we work with the Franchise Tax Board our exposure decreases. I think ultimately, they will decide credit unions are subject to a tax on earnings from capital. That's a far cry from a tax on gross income." Also in that issue, bankers celebrate "an important victory" over CU chartering authority when an approval of a community charter for Lowry FCU was revoked under pressure from the Colorado Bankers Association. Colorado Credit Union League President Carroll Beach vowed the fight is not over yet. In a suit that only seeks clarification of the commissioner's authority and reinstatement of the state charter, the Colorado CU League has asked the court for permission to act as a co-plaintiff. "We are not hypercritical of the commissioner," said Beach. "It is just that CU chartering authority has never been challenged like this before."