Property Tax Exemption for Credit Unions

(a) Real property owned in fee simple or leased for a period of one year or more by a federal or State credit union which is actually and exclusively used for credit union purposes shall be exempt from real property taxes to the extent taxes assessed exceed $1,000. If the property for which exemption is claimed is leased, the lease agreement shall be in force and recorded in the bureau of conveyances when the exemption is claimed. As used in this section, “federal credit union” means a credit union organized under any federal law including the Federal Credit Union Act of 1934, 12 USC Chapter 14, as amended, and “State credit union” means a credit union organized under State law. (b) If any portion of the property that might otherwise be exempted under this section is used for commercial or other purposes not within the conditions necessary for exemption (including any use the primary purpose of which is to produce income even though such income is to be used for or in furtherance of the exempt purposes) that portion of the premises shall not be exempt but the remaining portion of the premises shall not be deprived of the exemption if the remaining portion is used exclusively for purposes within the conditions necessary for exemption. In the event of an exemption of a portion of a building, the tax shall be assessed upon so much of the value of the building (including the land thereunder and the appurtenant premises) as the proportion of the floor space of the nonexempt portion bears to the total floor space of the building.