Senate committee hears bill to tax receipts when Oregon-chartered credit unions buy bank business portfolios

On April 28, 2025, the Senate Committee on Finance and Revenue opened a public hearing on Senate Bill 781, which would require Oregon‑chartered credit unions that acquire the business portfolios of banks to pay Oregon corporate excise tax and the corporate activity tax on receipts from those acquired portfolios.

The bill’s sponsors and backers said the change would preserve tax equity and protect community banks; credit unions and allied witnesses said the measure would discourage rare rescue transactions that preserve local services. The hearing included testimony from state lawmakers, banking groups, credit union executives, a national tax policy researcher and attorneys representing credit unions.

Senator Todd Nash (Senate District 29) said the bill grew out of recent purchases in Oregon and elsewhere and concerns that bank income could become permanently tax-exempt after a transfer to a credit union. "There was an announcement that Spokane Teachers Credit Union purchased Community Bank in Northeastern Oregon," Nash said, adding he wanted to ensure the tax burdens on bank portfolios did not disappear during transfers.

Representative Bobby Levy (House District representing Umatilla, Union and Wallowa counties) testified…