§1768 — Title 12 Banks and Banking | U.S. Code

Summary

Federal credit unions and most of what they own or earn are not subject to taxes by the United States or by any state, territory, or local government. Land and physical property (like buildings and equipment) can be taxed the same way as similar property owned by others. A member’s holdings in a federal credit union can be counted when valuing that person’s personal property for local tax purposes. The credit union itself cannot be forced to collect or enforce that tax, and the tax rate on those holdings can’t be higher than the rate charged on holdings in domestic credit unions.

Title 12, §1768

Banks and Banking — Source: USLM XML via OLRC

The Federal credit unions organized hereunder, their property, their franchises, capital, reserves, surpluses, and other funds, and their income shall be exempt from all taxation now or hereafter imposed by the United States or by any State, Territorial, or local taxing authority; except that any real property and any tangible personal property of such Federal credit unions shall be subject to Federal, State, Territorial, and local taxation to the same extent as other similar property is taxed. Nothing herein contained shall prevent holdings in any Federal credit union organized hereunder from being included in the valuation of the personal property of the owners or holders thereof in assessing taxes imposed by authority of the State or political subdivision thereof in which the Federal credit union is located; but the duty or burden of collecting or enforcing the payment of such a tax shall not be imposed upon any such Federal credit union and the tax shall not exceed the rate of taxes imposed upon holdings in domestic credit unions.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1959—Pub. L. 86–354 substituted “but” for “Provided, however, That” and inserted “a” before “tax”. 1937—Act Dec. 6, 1937, inserted tax exemption provision, the real and tangible personal property proviso, provided that responsibility of tax collection would not be imposed upon Federal credit unions, and that tax rate would not exceed that of domestic credit unions.

§1768 Taxation

Summary

Title 12, §1768

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata