From Religion Dispatches-Relatively little fanfare accompanied U.S. District Judge Barbara Crabb’s ruling in October that a tax exemption for clergy housing dating back to 1954 violates the First Amendment. Crabb confirmed her ruling in the case Gaylor v. Mnuchin this past Wednesday, declaring unconstitutional a provision of the tax code that’s made it possible for clergy to enjoy higher standards of living than their salaries might suggest.
At issue is section 107 of the U.S. Tax Code, which contains two subsections pertaining to “the case of a minister of the gospel.” (The term was originally intended to refer only to ordained Christian clergy, but its meaning was later expanded by the Internal Revenue Service to include their counterparts in other religious traditions.) The first subsection, 107(1), allows a minister to exclude from taxable income the value of a living space that’s considered “part of his compensation,” while the second, 107(2), permits the exclusion of “the rental allowance paid to him” for a living space. This second subsection, wherein the employer provides the money rather than the space itself, is the one that Crabb found unconstitutional.
More here-
http://religiondispatches.org/clergy-may-soon-find-taxes-soaring-as-result-of-an-under-the-radar-ruling/
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