The report details how 7.2 million Floridians now belong to credit unions that operate nearly identically to taxable banks, offering commercial loans, credit cards, and wealth management services. Despite this competitive parity, credit unions remain exempt from $188.7 million in corporate income taxes and $53.9 million in sales taxes annually. The analysis highlights that 84% of exemption value comes from just 21% of credit unions holding over $1 billion in assets.

Key findings include: – Credit union acquisitions of taxable banks remove $16.4 million annually from tax rolls – Florida’s 26 largest credit unions control 83.8% of total industry assets – A typical $150M credit union avoids $259,200 in taxes paid by comparable banks – Federal exemptions account for 57% of total tax savings ($147.8M)

The report urges reevaluation of tax policy as credit unions increasingly mirror commercial banks, noting Congress revoked similar exemptions for savings & loans in 1951. With consolidation accelerating – 75% of assets now controlled by billion-dollar institutions – Florida TaxWatch calls for renewed debate about equitable taxation of financial institutions.