New York Legislation Seeks Parity on Sales Tax Exemption, Municipal Deposits

ALBANY, N.Y. – Legislators in the New York State Senate and Assembly are showing some support for credit unions through two bills recently introduced: S.7126, introduced by State Sen. Hugh Farley (R-Adirondack), seeks an amendment to the state’s banking law that would exempt both state-chartered and federal-chartered credit unions from a state sales tax. If accepted, the state-charter exemption would go into effect starting Jan. 1, 2007. In addition, the bill would exempt from sales tax as of January 1, 2005, any federally chartered credit union that converts to a state charter. Also beginning in 2005, the state Banking Department would grant state-chartered credit unions a credit against any assessments or fees owed. The second measure, A.11036, introduced by Assemblyman Ronald Tocci (D-Westchester), would amend New York’s general business law and state banking law to allow credit unions to accept and secure municipal deposits. Currently, only commercial banks are allowed to accept public funds from municipalities. Tocci’s bill is the equivalent of S.3166 introduced by State Sen. Kevin Parker (D-Metro).