Protecting the credit union tax status at the state level is the New York credit union movement’s top legislative priority for the year ahead, according to results from the New York Credit Union Association’s 2020 Legislative Survey. The survey included responses from participants representing credit unions in every asset tier and from every corner of the state.
Nearly 58% of survey respondents said protecting the credit union tax status was their most urgent state legislative priority. When asked to grade the urgency of preserving the credit union tax status, with 1 being the least urgent and 10 being the most urgent, survey participants ranked the issue at 8.8 out of 10.
Although there has not been a direct threat to the credit union tax status in New York in recent years, several other states — most notably Iowa and Kansas — have had significant legislative battles over the credit union tax status. The efforts indicate the bank lobby is focusing on a state-by-state approach to taxing credit unions after decades of unsuccessful attempts at the federal level.
Respondents also rated public deposits legislation (7.5 out of 10) and data security legislation (7.4 out of 10) as urgent legislative priorities.
Survey participants ranked the urgency of the additional state legislative issues as follows:
- increasing the credit union role in economic development (6.2 out of 10);
- establishing a state Financial Literacy Commission (5.5 out 10);
- securing the ability to participate in the Excelsior Linked Development Program (5.1 out 10);
- actively participating in a solution to address the taxi medallion situation (4.5 out of 10);
- supporting legislation to enact remote notarization (4.4 out of 10); and
- ensuring credit unions can serve cannabis businesses in compliance with state laws (4.3 out of 10).
At the federal level, protecting the credit union tax status was clearly the most urgent legislative priority for survey participants, with respondents on average ranking the urgency of the issue 9.2 out of 10.
Merchant data security (7.4 out of 10), general cybersecurity (7.3 out of 10), the protection of member data by third parties (6.7 out of 10) and ensuring NCUA’s field of membership rule withstands judicial challenge (6.6 out of 10) were all considered urgent federal legislative priorities by respondents.