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Title 12 — Banks and BankingRelease 119-73not60

§1768 Taxation

Title 12 › Chapter 14— FEDERAL CREDIT UNIONS › Subchapter I— GENERAL PROVISIONS › § 1768

Last updated Apr 3, 2026|Official source

Summary

Treats federal credit unions, their property, funds, and income as free from federal, state, territorial, and local taxes. Land and other physical property the credit unions own can still be taxed the same way similar property is taxed. Members’ holdings in a federal credit union can be counted as the owners’ personal property for state or local tax purposes. The credit union cannot be required to collect or enforce those taxes. Any tax on those holdings cannot be higher than the rate charged on holdings in domestic credit unions.

Full Legal Text

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.

Legislative History

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.

Reference

Citations & Metadata

Citation

12 U.S.C. § 1768

Title 12 — Banks and Banking

Last Updated

Apr 3, 2026

Release point: 119-73not60