S.D. bankers rally for joint effort on tax equality

With the leadership of Raymond Smith, the 2013-2014 chairman of the Independent Community Bankers of South Dakota, ICBSD will continue its joint effort with the South Dakota Bankers Association to push for equal tax treatment for credit unions and the Farm Credit System..The president of The First National Bank in Philip was elected chairman of the association at ICBSD's annual retreat at the Sylvan Lake Lodge, Custer, S.D., on July 26. Terry Torgerson, CorTrust Bank, Mitchell, was elevated to chair-elect, while Emily Hofer, Merchants State Bank, Freeman, became immediate past chair..South Dakota bankers have taken a new tactic in banks' endeavor for tax equality. With their combined efforts, they hope to help bring an end to the stalemate on the issue by obtaining a resolution from the state legislature in favor of equal taxation for credit unions and Farm Credit System institutions. The associations look to accomplish this through a change in message. Rather than wording their cause in terms of fairness, which can seem self-serving, they instead are reaching out to representatives in local, state and federal government to educate them on the revenue missing from the tax coffers due to tax-exempt entities. .Under the leadership of Hofer, the ICBSD board voted to bring a proposal to the state legislature last year. Since then, ICBSD and SDBA worked together to interview legislators asking them to pass the resolution. Smith said a resolution from the state would support reform at the federal level, where a change to the tax code must be made. "We expect to spend some time at the Capitol in the coming year as we work with the legislature," he said..Tax equality has been a hot issue for years. But Smith said his passion for the banking industry and banking issues will help him continue to drive forward in the direction set by ICBSD's directors. "I want to advocate for my industry," he said..Smith also said he wants his term to be about education and the next generation of bank leaders. In particular, he wants to make progress toward a leadership development program in the association. "We want to start a program this year," he said. "We want up-and-coming bankers to be involved and gain skills ranging from industry advocacy and leadership to economic development and government relations.".Smith called it the Emerging Leaders program..Banker involvement is heating up with energy brought by the association's new Executive Director Greg McCurry, Smith said. In the last year, one bank member and four associate members have joined ICBSD. "Greg has taken up the torch very well," Smith said. The increase in membership and meeting attendance also allowed ICBSD to grow its staff. The association hired Summer Geraets as a member services director in August..Smith said ICBSD is a strong association because of the commitment of its members. As a lifelong resident of western South Dakota and as a banker who has been with The First National Bank in Philip for 28 years, Smith shares their commitment to community banking in South Dakota..And this is not the only quality that will make Smith an effective leader of the association, according to McCurry. "Ray brings a high level of banking knowledge and solid leadership to our association," he said. "His knowledge, skills and abilities will allow our association to continue to grow and provide leadership on community banking issues in South Dakota and at our nation's Capital."