CRANSTON, R.I. -- The announcement from the $310 million Coastway Credit Union that it is considering changing to a mutual bank charter has, in turn, brought to light a state tax on deposits that only Rhode Island credit unions pay.
Under Rhode Island law, state chartered credit unions of over $150 million in assets must pay an annual tax of $.0695 on every $100 of the daily average of the deposits with the credit union during the calendar year. Credit unions with assets of less than $150 million must pay at the rate of $.0625.
Banks used to face the same tax but had the rate cut to zero in 1998.
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