SIOUX FALLS, S.D. (KELO AM) - The South Dakota Bankers Association says antiquated tax breaks for credit unions and the Farm Credit System should end.
Association President Curtis Everson says credit unions pay no federal income tax, no state bank franchise tax and no state or local sales taxes.
Everson says bankers are drawing attention to lost revenue opportunities. He says exemptions enjoyed by community-charted credit unions and Farm Credit institutions cost the federal government $3.4 billion a year and the South Dakota treasury $1.3 million a year. He says schools, cities, town and counties in South Dakota lose $3.7 million a year.
Everson says the Farm Credit System was established almost a hundred years ago to provide credit to beginning farmers and ranchers.