MERIDEN, Conn. (5/9/14)--In the final minutes of the state legislative session Wednesday, Connecticut credit unions secured the passage of a sales-and-use tax exemption for state chartered credit unions.
The exemption was passed by the Legislature as a part of the Gov. Dannel P. Malloy's budget implementer bill. The provision was passed with an effective date of July 1, 2016.
"This is a significant victory for state-chartered credit unions, and frankly, for our federally chartered credit unions as well," Jill Nowacki, Credit Union League of Connecticut president/CEO, told News Now. "The sales tax has been a deterrent for Connecticut credit unions in pursuing a state charter, and this provides parity between the state and federal charters."
Nowacki praised credit union advocates throughout the state for their grassroots efforts in supporting the exemption measure and offered "tremendous kudos" to Kelly Fuhlbrigge, league vice president of government relations.
The measure was initially proposed as a standalone bill. Nowacki said the league worked closely with the state Department of Banking and the governor's office to secure the exemption as part of the budget bill.
"Connecticut credit unions will now be able to choose the charter that makes the most sense for their members without a disincentive," said Howard Pitkin, Connecticut Department of Banking commissioner.