Lawmakers tackling credit union tax issue

A proposed tax on credit unions and tax cuts for banks, part of the Senate version of a $1.2 billion tax reform bill, came up less than 10 minutes into Friday’s legislative forum.Rep. Todd Prichard, a Democrat from Charles City, and Sen. Waylon Brown, a Republican from St. Ansgar, heard from constituents at the Chickasaw County Farm Bureau office.It remains to be seen what happens to the bill in the House, said Prichard, who brought up the credit union issue. Prichard said he did not want to raise taxes on smaller credit unions local to the New Hampton and Charles City area.Iowa banks, which are considered for-profit, now pay a 5 percent state franchise tax on profits (net income), Jeff Robinson with the nonpartisan Legislative Services Agency Fiscal Services Division states in a publication about “Senate File 2383 - Tax System Modification.”
For more on this story, see the March 20 Tribune.