ECFA Presses for a Fix on Nonprofit Parking Tax

In a November 13 letter, ECFA President Dan Busby joined a diverse coalition of faith leaders in continuing to call upon Congress to step up and repeal the controversial “nonprofit parking tax.”

The parking tax, introduced last year by the Tax Cuts and Jobs Act, is expected to cost charities $1.7 billion over 10 years. Despite the law taking effect on January 1, 2018, the Treasury still has not provided clear guidance to churches and nonprofits.

“Unless repealed, this provision [Section 512(a)(7)] will require tens of thousands of houses of worship to file tax returns for the first time in our nation’s history and will impose a new tax burden on houses of worship and nonprofit organizations,” according to the statement.

Additionally, the new law creates significant constitutional concerns surrounding government entanglement with churches “simply because these houses of worship allow their clergy to park in their parking lots.”

Click here for the Coalition's full letter and comments on the nonprofit parking tax.


This text is provided with the understanding that ECFA is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.

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