Tax-free clergy housing safe, federal court rules, dismissing atheists' complaint
via Deseret News:This was another one of Barbara Crabb's ruling, in case you were wondering about her comprehension of law.
Thousands of possibly anxious ministers can sleep a bit easier tonight: a federal appeals court panel has tossed a lawsuit challenging a cherished clergy tax break.
While churches have been able to provide tax-free housing to clergy since the beginnings of the federal income tax 100 years ago, it was only in 1954 that Congress enacted a law granting tax exemption for a “parsonage exemption,” where clergy could allocate part of their salary for either mortgage or rent payments and not pay taxes on that income.
Attorney Erik Stanley of the Alliance Defending Freedom said of the housing grant, “The allowance many churches provide to pastors is church money, not government money. It is constitutional and should continue to be respected and protected.”