A provision in the Tax Cuts and Jobs Act of 2017 would impose a new tax on parking and transit benefits provided by nonprofit organizations, including churches. This change, also known as Section 512(a)(7) of the law, taxes nonprofit organizations – including houses of worship – for the cost of parking and transit benefits provided to employees. The provision forces nonprofits and houses of worship to shoulder burdensome accounting and regulatory compliance costs, and it will hopelessly entangle the IRS with houses of worship. Moreover, according to the Joint Committee on Taxation’s score of a full repeal of Section 512(a)(7),the provision would extract $1.7 billion from the non-profit sector over 10 years. While non-profit organizations and houses of worship will pay these taxes, it is the people these organizations serve who will ultimately suffer from this massive diversion of funds from civil society to the government.
Contact your U.S. senators and representatives today and ask them to repeal Section 512(a)(7) and stop this new tax on churches and nonprofits!