wfn.org | BOP, stated clerk defend ministers' housing allowance

[PCUSA NEWS <PCUSA.NEWS@ecunet.org>]

Note #7124 from PCUSA NEWS to PRESBYNEWS:

11-April-2002
02140	

BOP, stated clerk defend ministers' housing allowance

Longstanding tax break for clergy is questioned by federal appeals court 

by John Filiatreau

LOUISVILLE - The stated clerk of the Presbyterian Church (USA) and a coalition that includes the Board of Pensions (BOP) are defending the constitutionality of a provision of the Internal Revenue Code that grants an income-tax exclusion for housing to members of the clergy.

The group to which the BOP belongs, the Church Alliance, is encouraging ministers and congregations to urge their elected representatives in Washington to prevent the elimination of the long-standing tax exclusion.

A case before the federal Court of Appeals for the Ninth Circuit (in California) could bring a ruling that the housing allowance section of the tax code is unconstitutional.

In Warren v. Commissioner, a minister challenged an Internal Revenue Service (IRS) decision limiting his tax exclusion to the fair rental value of a church-provided house. The minister won the case in U.S. Tax Court, and the IRS appealed. 
In an unusual move, the federal appellate decided on its own to take up the broader issue of whether the housing allowance for ministers is constitutional.

The PC(USA)'s stated clerk, the Rev. Cliff Kirkpatrick, intends to join the BOP and other Church Alliance members in support of an amicus curiae ("friend of the court") brief arguing that the current law is constitutional.

The 200th General Assembly (1988), in a statement titled God Alone is Lord of the Conscience, recognized that the power to impose tax burdens and grant tax benefits derives from the U.S. Constitution and does not violate the "free expression" clause of the First Amendment. The official position of the PC(USA) is that, for the sake of equity, special income-tax benefits and burdens for clergy should be phased out - but gradually, and by legislation.

The BOP is urging Presbyterian ministers and congregations to ask their representatives in the House and Senate to support a bill filed by Rep. Jim Ramstad of Minnesota that would amend the law to clarify the contested provision.

For more information, including a sample letter to legislators, visit the BOP's Web site, www.pensions.org, or call the board at (800) 773-7752. For information about contacting lawmakers, visit www.house.gov and www.senate.gov. Elected representatives' names, addresses and telephone numbers are also published in local phone books.

The Church Alliance represents the benefit boards of 32 Protestant, Catholic and Jewish denominations. 
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