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.


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

  2. 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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