Magazine article American Banker

Court: Federal Institution Workers Exempt from Hotel Tax for Meetings

Magazine article American Banker

Court: Federal Institution Workers Exempt from Hotel Tax for Meetings

Article excerpt

Employees of federal credit unions don't have to pay hotel occupancy taxes when attending business meetings, a U.S. judge has ruled in California.

In a summary judgment Nov. 14, Judge Edward Rafeedie of the Central District of California upheld the California Credit Union League's argument that the employees are exempt under the Federal Credit Union Act.

The judge also indicated that he would order the City of Anaheim to refund taxes it had charged during credit union conventions held there over the past two years, an amount that league president David Chatfield said could run "into six figures."

The reimbursement would be an extra treat, because the league asked only that the tax not be charged in the future, Mr. Chatfield said.

Judge Rafeedie still has to issue a written ruling, which is expected later this month.

The league filed suit in September after getting complaints from its federally chartered members.

"We decided we had to bring this to a halt," Mr. …

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