Churches are targeted in a federal new parking tax.
A petition opposing a new parking tax on churches and other ministries is quickly gaining signatures. Thousands have signed an online petition calling for its repeal.
The new tax was recently uncovered in the Tax Cuts and Jobs Act passed by Congress six months ago. The largely hidden provision requires churches and other nonprofits to begin paying a 21% tax on employee benefits including parking, transportation, and other related benefits. The provision will cause churches that are nonprofits to file federal income tax returns and pay unrelated business income tax on the cost of parking provided to employees. While most benefits affected by the new provision are transportation-related, it will also affect the meals provided to workers and in some cases gym memberships.
The petition opposing the tax is being circulated by the Evangelical Council for Financial Accountability (EFCA).
EFCA estimates that the cost of compliance for churches and nonprofits could run into the tens of thousands of dollars annually.
Dan Busby, president of ECFA, has noted not only financial but also administrative burdens connected to this provision. He told Christian Post that to file “a form 990-T that they’ve never even heard of” small churches are going to need costly professional help. He said, “It’s just a ridiculous provision that was put in the law,”
In early June, Rep. Michael Conway (R-TX) introduced legislation to kill the tax.