HomeMy WebLinkAboutREP FC 105 11/25/1985 1984-1988 • REPORT OF THE •
COMMITTEE ON FINANCE
Date: November 25 , 1985
Place: Councilroom
Time: 9:00 a . m.
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred 'Bill 105, reports as
follows:
Bill 105 amends Chapter 19 , Article 10, relating to real property tax
exemptions , by adding a new section to exempt state and federal
credit unions from real property taxes for properties used for credit
union purposes .
Credit unions are non-profit, cooperative organizations which have a
restricted field of membership. Unlike other financial institutions ,
credit unions are required to accept any person who falls within its
field of membership.
Real property tax laws presently provide real property tax exemptions
to labor organizations because: 1 ) they have a restricted field of
membership; and 2 ) their primary purpose is to improve the employment
conditions of its members . Similarly, credit unions have a
restricted field of membership and provide their membership the
opportunity to improve their economic and social conditions .
Real property taxes due from credit unions in Hawaii County in
1985-86 are approximately $30 ,000 .
The HSAC Real Property Tax Committee has adopted Bill 105 as the
uniform draft to be circulated for consideration by the various
county councils .
FC REPORT NO , 105
DEC
ADOPTED : PI
FC-105 Page 2 November 25 , 1985
In Committee discussion, some concern was raised that providing the
tax exemption for credit unions would be unfair to other financial
institutions . The comparisons between the two were clarified by
explaining that the bank shareholders wish to maximize profits while
the credit union members tend to pool resources and provide money at
lesser than market rates .
Based on the foregoing information, your Committee on Finance
recommends that Bill 105 , exempting credit unions from real property
taxation on properties used for credit union purposes , be passed on
first reading, and that a copy of this report be forwarded to the
HSAC Real Property Tax Committee .
(ABSENT & EXCUSED)
FRANK DE LUZ III, CHAIRMAN
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ORRA NE ' . PCHAKU, V CE CHR. JA L. K. DAHLBERG, MEMBER lk
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TAKASHI DOMINGO, M21 BER SELL S. KOKUBU , MEMBER
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MERLE K. LAI, ME Bim, SPEN` ER K. SCHUTTE, MEMBER
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