On Wednesday, February 27^th almost 20 South Dakota Credit Union representatives visited with South Dakota’s federal elected officials during the GAC in Washington D.C.  

These meetings allowed credit unions to ensure that South Dakota’s federal elected officials understand the credit union tax exemption and urge them to work to protect that exemption.  Credit union professionals stressed to the federal elected officials that a tax on credit unions is a tax on 96 million Americans.  And, they reinforced with our elected officials that the credit unions’ tax status is based on its structure of being not-for profit, member-owned cooperatives, with volunteer boards, where every member gets a vote and a say in how the credit union is operated.

When asked about the credit union tax exemption, Senator Johnson  (Chair of the Senate Banking Committee) indicated that we don’t have to worry about that, and that it won’t happen on his watch.  But, he also pointed out that anything is possible in Washington D.C.  

Senator Thune stated that he supports the credit union tax exemption in its current form, but of course if significant tax reform takes place everything may be taken into consideration.  And, Representative Noem stated she was not sure where the capital would come from (referring to capital for businesses and consumers) if the credit union tax exemption was lost.

Other issues discussed included regulatory relief; the amount of CFPB rulemaking; concerns about access to credit as a result of all of the new mortgage rules such as the ability to pay and qualified mortgage rules; HR 749 which would eliminate redundant and unnecessary privacy notices; the need to raise the business lending cap; the Farm Bill; and sequestration.

(Photos below L to R:  SD credit union professionals meet with Senator Johnson, Senator Thune, and Rep. Noem.)