LANSING, Mich.–Michigan Credit Union Division Deputy Commissioner Roger Little reiterated the tax-exempt status of Michigan state chartered credit unions in a recent letter.
The letter (2007-CU-05) stated that the Office of Financial and Insurance Services discovered that some local governments had attempted to collect personal property taxes from state chartered credit unions. Little pointed to Section105 of the Michigan Credit Union Act, which he said clearly states that Michigan chartered credit unions are exempt from such taxation.
Little cited: "A domestic credit union is exempt from taxation by this state or a political subdivision of this state except property taxes on real property. The shares of a domestic credit union are not subject to a stock transfer tax when issued by the credit union or when transferred from 1 member to another."
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The deputy commissioner recommended that Michigan credit unions keep a copy of the letter on file. It is posted on the agency's Web site at www.michigan.gov/ofiscreditunion.
The Michigan Credit Union League worked with the regulator to issue the official written statement. "We wanted an official statement that state chartered credit unions could use when responding to local government attempts to tax credit union property," league Director of Public Affairs Mary C. Davis said.
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