Some bankers say it's time to end tax breaks for credit unions. Credit union members disagree and say the tax exemption should be left alone.
On Thursday, bankers in Rapid City met to discuss the issue. They say tax breaks for credit unions and the Farm Credit System have outlived their purpose and should be eliminated by Congress.
Credit union supporters say credit unions are tax exempt for a reason. They say it's because they are democratically owned, don't have shareholders and are not for profit. "
"Businesses that are paying taxes should not be asked to pay more when there are clearly businesses that are going untaxed that could afford to pay and should pay their fair share," said Curt Everson, with the South Dakota Bankers Association.
"If the tax exemption would go away it would fundamentally change the federal credit movement and we would see credit unions, smaller credit unions, liquidate, go away," said Jeff Olson, with the Credit Union Association of the Dakotas.
Currently there are 46 federally charted credit unions in South Dakota.