News Release
Contact: Public Relations Coordinator
(800) 342-9835, ext. 8130Breaking News: Morahan Nixes Tax Bill
(May 31 - Latham, NY) – The New York State Credit Union League has just learned that Senator Thomas Morahan (R-Westchester/Rockland) has withdrawn his sponsorship of a bill he introduced (S.5701) last month calling for the taxation of federal credit unions.
The move can be directly attributed to the immediate response and lobbying efforts by League leadership and credit union action upon announcement of the proposed legislation.
League President/CEO William J. Mellin, Senior Vice President/General Counsel Michael Lanotte and Vice President Amy Kramer conducted visits and kept in constant contact with the Senator and his staff to reaffirm what credit unions are and whom they serve.
Credit unions in his district and across the state were also quick to answer the League’s rallying call, contacting Morahan’s office, sharing stories about how they specifically, and credit unions generally, help the communities they reside in. In opposition to the bill, credit unions and League staff also participated in a letter writing campaign and signed petitions.
"It felt wonderful to see the cooperative spirit and strength of New York credit unions that was exhibited when our tax-exempt status was threatened," said William J. Mellin. "I believe it was the constant credit union presence over the last four weeks that had the Senator and his staff re-examine the validity of the bill and ultimately withdraw it."
It was beneficial as well that the League’s Governmental Affairs Conference (GAC) took place May 21. A sizeable contingent of League and credit union representatives met with Morahan’s staff regarding his bill that day. The event also served as a critical opportunity for credit unions to reach out to their local legislators asking for their support to defeat the proposed taxation legislation and to show grassroots strength in opposition.
While even bank trade groups admitted that Morahan’s bill would have had little to no impact even if it were signed into law because it could not have overridden the federal law, the League did not like the message it sent.
"While we have dodged this bullet, we still need to keep our guard up for future attempts against credit union’s tax-exempt status here in New York State and across the nation," added Mellin.
Morahan had no co-sponsor in the state Assembly for the bill and wasn’t actively seeking support for it from other legislators. According to his staff, he has no other credit union bills planned for immediate introduction.
A member of the Senate Banks Committee, Morahan had been considered a supporter of credit unions prior to his April 25 introduction of the bill. The League and credit unions in his district will continue their outreach to the Senator with a meeting scheduled for later this month.
The New York State Credit Union League (NYSCUL) has served as the trade association for the state’s credit unions for 90 years. It is the fifth largest league in the country. New York credit unions have assets of more than $37 billion and 4.1 million members. To learn more about the League, visit www.nyscul.org.
New York State Credit Union
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P.O. Box 15118, Albany, New York 12212-5118 | 19 British American Boulevard, Latham, New
York 12110
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