Clergy Housing Tax Exemption Case Heard by Seventh Circuit Court of Appeals

[Stan]

The Seventh Circuit Court of Appeals heard oral arguments this week in Gaylor v. Peecher, a case that challenges the constitutionality of tax-exempt housing for clergy. Under 25 U.S.C. § 107(2), a pastor may receive a payment separate from taxable salary to pay for housing-related expenses including rent, mortgages and utility services. The post Clergy Housing Tax Exemption Case Heard by Seventh Circuit Court of Appeals appeared first on ReligiousLiberty.TV - Celebrating Liberty of Conscience.

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[Narcah]

Why should they get tax free income for housing?

[Gregory Matthews]

Because that is how the law was written.  It should be noted that there are others who also get a tax free housing allowance.  For 18 years, I received such which was not a clergy exemption.

It should also be noted that as the law was written, as applied to clergy, it was limited and some clergy were not eligible for that exemption.  At another time, for 20 years, as a clergy person, I was not eligible for that clergy exemption.

By the way, I do not get such an exemption now, even though I do function in some resects as a clergy person.

 

[phkrause]

Legal battle continues over religious leader housing tax break

(RNS) — A federal court heard oral arguments this week on whether a longstanding housing tax break for clergy called a “parsonage allowance exclusion” is constitutional, setting the stage for a clash over competing claims of religious privilege and religious discrimination.

https://pantheon-live.religionnews.com/2018/10/26/legal-battle-rages-over-religious-leader-housing-tax-break-freedom-from-religion-clergy-allowance/

[Narcah]

I understand the law was written that way, but why?

[Gregory Matthews]

Why?

The basis for the general exemption is based upon the following ideas:

*  Some businesses required that an employee live in housing provided for them and generally sited on business property.  An example of this would be a prison warden. who, with family, was required to live on a house   provided on prison property.

*  It was decided that such was to the benefit of the  business and therefore subject to an allowed business deduction.

  The employee (prison warden) should not be required to pay tax on what was for the benefit of the business.

NOTE:  AS to clergy over time that exemption has been greatly restricted an only applies to some clergy. 

*  At the time of this ruling,    many denominations required that pastors and families live in denominational homes.  During the time that I was a SDA denominational pastor, I was always required to live in a house owned by the Conference and provided to me at a rental rate determined by the Conference, which was then excluded from taxation.

*  This clergy exemption is NOT restricted to members of a Christian faith.

*  A valid argument, might be made that in society today, the clergy exemption no longer has a place, due to the fact that in probably most cases, the clergy person is not required to live in a house provided by the denomination.  In actual fact, in the NAD, few, if any homes are owned by the Conference.  Most, if not all, are owned either by the pastor, or by someone else.

 

 

 

[Narcah]

Ok thanks, had no idea we denominational housing other than at schools. 

[Gregory Matthews]

Today, in the United States, probably the majority of the homes in which pastors live are not owned by the Conference.  Pastors like everyone else like to chose their  own home in which to live, as  such best meets their needs.  Few Conferences now want to be responsible for the required upkeep of the property.