A provision has been found in last year's tax law that could create a real financial and administrative headache for churches and other non-profit organizations.
The Evangelical Council for Financial Accountability is circulating a petition asking Congress to repeal what is known as the "non-profit employee parking tax." ECFA President Dan Busby tells OneNewsNow the law that went into effect on the first of January requires churches and other tax-exempt charities to pay a tax for employee parking, but nearly 2,300 organizations have signed the petition against it in just two weeks.
"There's a 21 percent tax -- the corporate tax rate – that would be applied to the cost of providing that parking," Busby explains. "I know that sounds crazy, but that is how top legal experts in our community interpret what is in that legislation."
While this could mean a significant financial and administrative burden to non-profits, Busby is hopeful that lawmakers will rectify what he calls an "ill-conceived piece of legislation."
"We believe once the consequences of this provision are understood, members of Congress unhindered will step up to correct it so that the good work of churches and charities can go on unhindered, unimpeded across our country," he submits.
Busby says this provision is an example of how some things slip through Congress during the sausage-making process of legislation.
ECFA has 2,300 members who conservatively estimate that the provision in the law will cost their members tens of millions of dollars each year. And if all nonprofits are included, the burden in the U.S. could easily could approach $1 billion a year.