Hudson Valley Federal Credit Union will have to pay a state tax to record mortgages it issues despite being a federal credit union, according a decision handed down Thursday by the New York Court of Appeals, the state's highest court.
The 262,000-member $3.7 billion, Poughkeepsie credit union had brought suit against New York in 2009, arguing in part that it did not have to pay the tax, which is assessed and paid prior to mortgages being recorded, since it is exempt as a credit union generally and as federally chartered credit union specifically under the supremacy clause that allows federal laws to override those of states.
NAFCU and CUNA both filed friend of the court briefs in the case and expressed disappointment in the ruling.
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