The 503-page Tax Cuts and Jobs Act contains an obscure provision creating a 21 percent tax on parking and other transportation-related fringe benefits provided by churches and other nonprofits to their pastors and other employees. Besides imposing a financial burden, the new tax will be a compliance headache for many.

NAE President Leith Anderson joined a coalition letter to members of Congress calling for the repeal of this new tax on churches and nonprofits. Leaders of over 30 organizations signed the letter.

The letter says in part:

Whatever purpose Section 512(a)(7) was intended to serve cannot justify extracting $1.7 billion in taxes from nonprofits and houses of worship within just 10 years. Perhaps worst of all, this provision will hopelessly entangle the IRS with houses of worship, simply because these houses of worship allow their clergy to park in their parking lots.

Download the full letter.

Leith Anderson
Leith Anderson is president emeritus of the National Association of Evangelicals and pastor emeritus of Wooddale Church in Eden Prairie, Minnesota. He served as NAE president from 2007-2019, after twice serving as interim president. He served as senior pastor of Wooddale Church for 35 years before retiring in 2011. He has been published in many periodicals and has written over 20 books. Anderson has a Doctor of Ministry degree from Fuller Theological Seminary, and is a graduate of Moody Bible Institute, Bradley University and Denver Seminary.