Wednesday, February 24, 2010

Should Honolulu Credit Unions Pay More Than $100 in Property Taxes?

Currently, credit unions, as well as other nonprofit organizations, only pay $100 in real property taxes to the City of Honolulu regardless of the assess value of the property.

However,the Hawaii Credit Union League opposes a proposal by the City of Honolulu that would either eliminate or raise the minimum real property tax on credit unions and other nonprofit organizations to help address the city's $140 million budget deficit.

For example, HawaiiUSA Federal Credit Union's corporate office at 1226 College Walk are assessed at $16.9 million, but it only pays $100 in property taxes on this property. This $1.1 billion credit union's reported profits of $8.7 million for 2009.

I think HawaiiUSA FCU can afford to pay its fair share in property taxes.

After all, the only tax that federal credit unions are subject to is a real property tax and even that is contingent on local law.
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2 comments:

  1. AnonymousFebruary 25, 2010 at 10:45 AM

    Correct me if I'm wrong, but don't federal credit unions pay employment taxes?

    ReplyDelete
  2. AnonymousFebruary 28, 2010 at 9:20 PM

    FCUs must pay federal (and state/local) employment taxes, federal (and state/local) gasoline taxes, federal air travel taxes, state and local sales taxes (on many items when not paid directly by the FCU), and all the hidden taxes that Subchapter S banks must pay. Evidently not paying federal corporate income taxes is the key to FCUs not being eligible for TARP and other federal government bailout money.

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