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WSPA News-Controversy Over New Tax Money Legislation Brews in the Upstate

Simone Jameson

*Fred Green, President and CEO of the SC Bankers Association, is inaccurate in the included quote indicating credit unions are non-tax paying entities and do not pay taxes. Credit unions paid $38.1 million in direct state taxes in 2023.


Leaders in one Upstate city are pushing for new legislation they said would allow them to keep more taxpayer dollars in their community.


Travelers Rest City Council member Catherine James is advocating for the South Carolina Community Financial Empowerment Act to become law. The legislation would allow city leaders to keep their tax money in credit unions in addition to commercial banks. 


“It leads to more choice, accessibility, and affordability in financial products. And allowing public deposits at a credit union in smaller cities would also keep more of those public dollars right there in the community rather than sending it potentially out of state,” said James.   


A bill for the SC Community Financial Empowerment Act was filed in the state house early December. James told 7NEWS having the option to deposit taxpayer funds in credit unions could save taxpayers money and provide lower interest rates. She said it could also help to fund infrastructure projects and other improvements. 


“If we can earn a higher yield, we should do so, because that is going to help us meet our budget, and pay for the things that our constituents have asked us to steward for them,” James also said. 


The SC Bankers Association is against the legislation.


“This bill is designed to allow those already profitable non-tax paying entities to make even more money and not pay any taxes,” said President and CEO of the SC Bankers Association Fred Green. “I don’t care how big your company is, in South Carolina if you make a profit you’re paying income tax. These very big companies make huge profits and don’t pay any.” 


Whitmire is the only community in the state right now where leaders can deposit tax dollars in credit unions. Opponents to the bill said it would make it harder for smaller commercial bank branches to provide loans.

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