Friday, February 18, 2011

Mortgage Tax Illegal?

Mortgage Tax Class Action Lawsuit against Credit Union could have Multi-state Impact

"Thousands of local homeowners have been charged millions of dollars in taxes in what a local credit union says is a violation of federal law — and the U.S. Department of Justice agrees.

A pair of lawsuits pending in state and federal court could return millions of dollars in taxes to the homeowners and the credit union, but take the money away from the state, counties and towns in the process."

"They claim the act that created federal credit unions prohibits such taxes.

Ironically, the credit union filed a lawsuit last year against the New York state Department of Taxation and Finance for the same reason.

The credit union is asking the state for its money back, and the borrowers are asking the credit union for their money back.

The suits have the potential to mean cheaper mortgages for consumers who use credit unions, but also less revenue for the state, counties and towns. And since some other states also charge the tax, the case could set a precedent credit unions elsewhere could use to file lawsuits of their own."

Kill the Contract $$ Bullseye, "thin the herd".

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