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Proposal to change tax status of South Dakota CUs fails to garner support in Brookings

TaxesA proposal to change the tax-exempt status of South Dakota credit unions and farm credit services died last week after it failed to garner support from the Brookings Chamber of Commerce’s Government Affairs Committee.

The committee made a motion to approve the resolution, but it did not receive a second motion and was not brought into question. The proposal would have been recommended for adoption if approved by the Brookings CoC.

The Credit Union National Association said the South Dakota Bankers Association is seeking a resolution sponsor for the state legislative session set to open on Jan. 14, adding that its proposal has failed to win approval from several city, county and school boards across the state.

“Over the course of the last several months I have come to the conclusion that the reason that banks are devoting so much time and energy to shouting at the rain about ‘tax equality’ on the local level is because they can’t sell it anywhere else,” Jeff Olson, the vice president of advocacy for the Credit Union Association of the Dakotas, said.

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