Excise Tax, Community Reinvestment Bills Target Oregon Credit Unions
The Northwest Credit Union Association is keeping a close watch on two new proposed laws, including one that would impose a corporate excise tax on Oregon’s state-charted credit unions and interstate credit unions holding any public funds deposits that exceed $250,000.
Oregon H.B. 2486 was introduced earlier month and is essentially the same bill that was introduced in the 2011 session but never received a hearing, according to the NWCUA. The excise tax also would apply to any credit union holding commercial loans that collectively exceed 10% of the credit union’s assets and would apply to tax years beginning on or after Jan. 1, 2013.
The second bill, H.B. 2485, would subject Oregon’s credit unions to rules similar to the U.S. Community Reinvestment Act of 1977 that encourages banks to meet all of the credit needs of the communities they serve, particularly low- and moderate-income communities.
The Oregon bill proposes to require the director of the state’s Department of Consumer and Business Services to adopt rules and set minimal standards to govern the nature and scope of a credit union’s obligations to meet the credit needs of communities.
“We are always in contact with legislators about any kind of legislation floated by bankers or others that would attempt to hinder services to 1.4 million consumers who belong to Oregon credit unions,” said Lynn Heider, vice president of public relations and communications for the NWCUA.
“Our lawmakers have long understood and supported the value that credit unions provide Oregonians and they continue to feel that way, and so we are prepared for any such legislation,” Heider said.