MONTPELIER, Vt. – Vermont state-chartered credit unions havewaited four years through patches in the state's credit unionstatute for it to be totally recodified, but if the Vermont BankersAssociation has its way, any recodification will include anamendment requiring credit unions with more than $10 million inassets to pay a state franchise tax. Vermont Credit Union LeaguePresident/CEO Joe Bergeron sat through two days of testimony fromthe Vermont Bankers Association before the state House CommerceCommittee on March 9 and 10 and listened as representatives fromthe VBA explain why Vermont's 31 SCCUs should have to pay afranchise tax on their deposits. According to Bergeron, VBAPresident Christopher D'Elia stated the group's concerns focused onthree areas: field-of-membership (CUs have grown beyond theiroriginal mandate of common bond); credit unions' involvement withbusiness lending; and credit union taxation. Bergeron said he foundit “curiously interesting” that D'Elia told the Committee membersthat all of the bankers' other concerns would “go away” if creditunions were taxed. “I think it's ironic that just having creditunions in Vermont pay taxes would simply make the bankers' otherconcerns go away,” said Bergeron, adding that the bankers indicatedthey planned to introduce their amendment the afternoon of March9th.. If that happens, Bergeron said Vermont credit unions willfight the bankers initiative “in any way we can.” He estimates thatapplying the state's franchise tax to CU would only bring in about$600,000 annually. The League president said there are severalmembers of the House Commerce Committee and the state legislaturewho are credit union friendly, but he refrained from commenting onwhether the League had targeted any specifically to lobby if thebankers' amendment gains support among legislators. The League isalso aware that there are a few members of the state legislaturewho also work at banks, including House Commerce Committee ChairmanMark Young (R) who is chairman of one of Vermont's smallest banks,First National Bank of Orwell. “Chairman Young has been fair withus to date in terms of removing his banker hat and wearing hischairman's hat when he's in committee,” says Bergeron. “I'm suresome of his peers have certain expectations of him because of hisposition as a banker, but hopefully he'll continue to remain fair.”When Bergeron testified in front of the Committee a couple of weeksago, joined by representatives from about a dozen credit unions whoalso testified , he expressed his certainty that “Vermonters andVermont legislators want to see Vermont institutions remain Vermontcharters. For that to happen, Vermont law must not put Vermontstate-chartered credit unions at a disadvantage compared to theirfederal counterparts.” Others who testified at the March 9th and10th hearing were: Denise Deschens, attorney, Primmer & Piper;Steve Knudson, attorney for banking; Tom Candon, deputycommissioner of banking; Tom Pelletier, Northfield Savings Bank;George Hayes, Brattleboro Savings & Trust; and Rick Manahan,People's Trust. -

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