09 Jan Parking Lot Tax to Churches Officially Repealed
One controversial provision of the Tax Cuts and Jobs Act of 2017, you may recall, required nonprofit organizations, including churches, to calculate unrelated business income tax on qualified transportation fringe benefits provided to employees.
Among the benefits included were employer-provided parking and mass transit passes, as well as parking fees paid on behalf of employees to third-party vendors.
The backlash from the so-called “parking lot tax” dominated headlines throughout the summer of 2018, then resurfaced again at the end of 2018 when the Internal Revenue Service finally issued its guidance on the provision’s implementation. Continued calls for the repeal of the provision ebbed and flowed throughout 2019.
Then, in December, church and nonprofit leaders finally got the news they wanted for nearly two years. Congress adopted a repeal—and President Trump signed it into law.
This article has been adapted from the Church Law & Tax website.
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