March 2, 2018
In this Issue:
Credit Union Tax Increase Passed in Senate Bill
On Wednesday night, Senate Republicans passed their tax reform bill, which included a tax increase for at least 20 Iowa credit unions, impacting more than 500,000 members. The Senate legislation strikes the moneys and credits tax, placing credit unions under the franchise tax with banks. The bill also changes the franchise tax rate, lowering it from the current 5% of net income to a graduated rate (2% on net income up to $7.5 million and 4% on net income over $7.5 million).
Under this legislation, other credit unions could be impacted in the future as well, should they grow. The fiscal note produced by the State claims this is a $18 million tax reduction to the general fund for banks and a net increase of $3 million in state revenue from the credit union industry.
On Thursday, the House began its tax reform process, using Governor Reynolds' tax bill, HSB 671, which does not include a credit union tax increase. It is expected the House Ways and Means Committee will try to pass the bill (with an amendment) out of committee in mid-March.
Register for March 7 Capitol Hill Day
This Capitol visit may be the most important advocacy work you have done for your credit union in recent history. The bankers are working, but our voices must be louder and stronger against the proposed legislation.
Lawmakers must understand the impact this tax will have on credit union members and communities across the state.The more people we have in attendance, the stronger our message will be to lawmakers, that a tax on credit unions is a tax on Iowans!
Can we count on you? Please register here!
Contact the House Ways and Means Committee!
Thanks to credit unions who are engaging your membership and any of you who have contacted your legislator! Credit union advocates like yourself have sent nearly 30,000 emails to legislators in the last few months. We need to keep up the outreach!
We now need to turn our attention to the Ways and Means Committee, to ensure harmful tax language is not included in that bill. Below is a list of those committee members, with their city of residence and contact information. If one of these is your legislator, or if your credit union has a branch in that area, please send a short, personalized note, or give them a call. The message is simple: Senate Republicans' tax reform bill raises taxes on twenty credit unions and over 500,000 Iowans, while providing banks an $18 million tax cut. Please oppose any tax increase on credit unions in the House bill. A tax increase on credit unions is a tax increase on Iowans.
Iowa House Ways and Means Committee Members:
Legislation of Interest to Credit Unions
Below is a list of key bills that passed out of either the House or Senate this week; you can view the entire list of bills being tracked by ICUL’s lobby team at any time by going HERE.
SF 2059/HF 2257 This bill provides that County Assessors may send any assessment, notice or other information to persons by electronic means, if the person entitled to receive such items has authorized that form of delivery. Passed Senate 49-0.
SF 2215/HF 2286 A bill for an act prohibiting cities and counties from imposing time-of-sale requirements on transactions involving real property. Passed House 77-21.
SF 2338/HF 2199 This bill would make it a class D felony for someone to possess a scanning device or encoding machine with the intent to use it for the purpose of obtaining information encoded on a payment card. The bill also makes it a crime of third degree criminal mischief for anyone to destroy, deface or damage property that has the ability to process payment cards, including ATMs. Passed House 98-0.
HF 2125 This bill amends the probate code to allow for the distribution of a decedent’s property by affidavit in estates as large as $50,000. Under current law, only property in estates that are under $25,000 may be distributed by affidavit. Passed House 98-0.
HF 2240 This bill permits employers to provide employees with wage statements by electronic means. Passed Senate 47-2, passed House 98-0.
GAC Conference in DC
More than 50 Iowa Credit Union advocates travelled to Washington, D.C., for the annual Government Affairs Conference (GAC), hosted by the Credit Union National Association (CUNA). The advocates attended conference sessions that featured prominent national speakers, as well as valuable professional development sessions.
In addition to conference activities, Iowa advocates “hiked the hill” and visited with every member of the Iowa congressional delegation or their staff. During the visits, the Iowa advocates focused on several priority issues, including credit union taxation, regulatory reform, and data security.
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