Waterloo-Cedar Falls Courier: Whether credit unions should be taxed the same as banks remains a point of contention as state lawmakers attempt to reform Iowa’s tax laws. Currently, banks pay a 5 percent state tax on income; credit unions do not. Banks want credit unions to pay the tax. Credit unions say they should not be required to pay the income tax because they are nonprofit entities, and despite their growth, they still represent a small share of the market. State lawmakers are similarly divided.