Discussion on changes to credit unions not-for-profit status

Discussion on changes to credit unions not-for-profit status

Posted: Jan 31, 2018 9:15 PM
Updated: Feb 1, 2018 10:42 AM

KIMT News 3 - While lawmakers discuss the potential for tax reform, some banks are asking elected officials to take a look at credit unions not-for-profit status. That's something those we spoke with say they don’t really take into consideration when choosing a bank.

“I think just because my dad also goes there and he trusts them so I trust them,” says Mallory Hunt, of Mason City.

Credit unions, like Cent Credit Union in Mason City, are not-for-profit, meaning they can apply for tax-exempt status.

Discussion in Des Moines is looking to make changes to that status because some argue they receive too many benefits. But those working at a local credit union say these changes are not necessary.

“We pay sales taxes, we pay property taxes, we pay employee-related taxes and sales taxes each year,” says Matthew Chizek, CEO of Cent Credit Union.

Chizek says his small credit union has a great relationship with banks locally and that this is a battle between the larger companies to level the playing field, but if these changes were to go through he says the company would have serious conversations on utilizing loopholes to once again get out of state taxes.

“With these darn loopholes you can get around a lot of stuff,” says Chizek. “It’s unfair and it’s unfortunate for everybody involved and it shouldn’t be that way.”

But while this discussion continues, Hunt says she isn’t sure this is something elected officials should get involved with.

“There’s something else they could be doing, but if they want to, go for it.”

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