Ruling 89-150


Federal credit unions organized under Chapter 14 of Title 12 of the United States Code are exempt from all taxation imposed by any State; 12 U.S.C. §1768. (A copy of the Organization Certificate; 12 U.S.C. section 1753; and a copy of the Approval of Organization Certificate; 12 U.S.C. section 1754; must be submitted to this agency by the federal credit union to establish entitlement to the exemption.)

Therefore, the sales and use tax does not apply to sales made to federal credit unions; Conn. Gen. Stat. section 12-412(2).

The exemption from sales and use taxes applies only if the retailer bills the credit union directly, and the bill is paid directly by such credit union. The exemption does not apply when the retailer bills an employee of the credit union and the bill is paid by such employee, even if such employee is subsequently reimbursed by the credit union.

Please note that a completed exemption certificate must be furnished to each retailer on each sale.


October 19, 1989