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[Phoenix RISING]

From Politico

Their recent tax-code rewrite requires churches, hospitals, colleges, orchestras and other historically tax-exempt organizations to begin paying a 21 percent tax on some types of fringe benefits they provide their employees.

Though many organizations are still unaware of the tax, more than 600 churches and other groups have already signed a petition demanding it be repealed.
“There’s going to be huge headaches,” said Galen Carey, vice president of government relations at the National Association of Evangelicals, an umbrella group of evangelical Christian organizations. “The cost of compliance, especially for churches that have small staffs or maybe volunteer accountants and bookkeepers — we don’t need this kind of hassle.”

The Jewish Federations of North America is looking at a new $75,000 tax bill this year because of the change.

But Republicans also wanted to treat nonprofits equally, which proved challenging.
Because those organizations don’t pay income taxes, lawmakers couldn’t take away fringe-benefit deductions. So instead they created a 21 percent tax on the value of some of nonprofit employees’ benefits.
The main benefits affected are transportation-related, like free parking in a lot or a garage and subway and bus passes. It also targets meals provided to workers and, in some circumstances, may affect gym memberships.

Churches and other groups want to know how they are supposed to go about calculating the value of things like parking spaces for employees. Some wonder if the garages provided as part of clergy residences are now taxable.

Other nonprofits have their own questions.

Universities want to know if the bus services they provide for faculty and students are taxable and how they figure out how much they owe. Orchestras want to know how to treat musicians who may perform in different locations.

“At what point is something a travel reimbursement? And at what point is it a commuter benefit?” said Heather Noonan, vice president for advocacy at the League of American Orchestras.

Treasury is now working on regulations spelling out the details of how the tax will work, though the groups are supposed to have already been paying the tax. It took effect Jan. 1 and nonprofits are supposed to pay it quarterly.

A host of groups, including the Boys & Girls Clubs of America, Goodwill Industries, the YMCA and the National Council of Nonprofits are demanding the tax at least be delayed, saying it is unfair to ask them to be paying a levy they don’t understand.

I put in a good 20 hours per week for a non-profit, so this interests me. Seems like people are just now finding these provisions in the new tax laws that were passed in the US, and people have many questions.

Like, how do you quantify feeding people in a non-profit? Would something like communion count at a church? A picnic? A food drive where you buy pizzas for the employees?

Reimbursement for travel?

There are many, many questions to be answered. I looked a good part of the morning to find the specific provision that defines this law, but couldn't find it. There is a petition to have this part of the tax law rescinded, but good luck when people hardly know about it.

I know there are some that might be happy to see churches taxed (because that would basically mean the end of Christianity), but this law is hitting, universally, all non-profits, which also could get rekt depending on many things, including the size of the orgnization.

Is this the beginning of the end of non-profits as tax laws look to place them in parity with for-profits?

Edit: from an evangelical publication:

"Tax practitioners who have evaluated Section 512(a) (7) generally believe that the result of this new provision is that tax‐exempt organizations that provide parking to their employees will be subject to unrelated business income tax on the cost of the parking provided. A nonprofit organization that simply allows its employees to park in a parking lot or garage that is part of the organization's facilities will be subject to a tax on the cost of the parking provided," the ECFA explained in a position statement available for download on its website.

So how much does a parking space cost? The IRS is still calculating it. But Busby predicts it will cost non-profits even more money than the actual tax amount because some will have to hire accountants just to sort through the new requirement.

"Because of this new tax, many tax‐exempt employers, including churches, hospitals, charities, and schools will be required to file federal Form 990‐T, and in many cases, state corporate income returns, every year regardless of whether they actually engage in any unrelated business activity. This new tax was purportedly added to the law to put tax‐exempt employers on the same footing as taxable employers with respect to employer‐provided parking," the ECFA states.

The law will reportedly apply to all churches that provide parking for their employees even if the employee isn't charged for parking.
At least 1,000 churches and other non-profit groups have reportedly signed the petition demanding the tax be repealed. And legislation to remove the tax is now before the House Ways and Means Committee.

Meanwhile secular humanists are applauding the added taxes on churches.

"This is good news," reads an article on the Progressive Secular Humanist website. "Churches should be taxed... It's long past time to start taxing churches."

The Hill:has also reported this story, but only copies from Politico. How (un)original....

 

[Papa]

“Republican tax law hits churches” is not a headline I ever expected to see in my life time.

 

[Captain Zyrain]

I'm not against them getting taxed, I think some of the places absolutely should get taxes. Those mega Churches in particular.

But.. they shouldn't really roll this out until they can tell people what they're supposed to be doing/taxing in a clear and concise way.

 

[Phoenix RISING]

“Republican tax law hits churches” is not a headline I ever expected to see in my life time.

The second place I went to is a Christian-based publication.

Churches Slapped with Shocking New Taxes: Here's What You Can Do to Stop It

Hmm, actually after reading some of it, it includes some important information. Will add to the OP.

 

[DiscoJer]

I don't see how this is a bad thing. All too often churches and non-profits are businesses, but all the money goes to the employees in terms of salaries and perks.

 

[Atrus]

Sounds like its mostly about tax fairness. Why should employees of not for profits get perks that are not taxable? The perks have nothing to do with their job. Should taxpayers be subsidizing their free coffee and sandwiches?

 

[Gander]

Not saying right or wrong let's take a step back and examine this. So the GOP wants more money from churches and non profits, organizations known to help the poor and displaced. However the GOP in chief who owns a line of hotels wouldn't even put people up who were devastated in Houston and Puerto Rico.

Hey we subsidize gas companies, maybe stop doing that? That might save some money.

 

[LordPezix]

I've been advocating for tax fairness for as long as I can remember.

Now if we can only get that flat tax rate across the board to all citizens I'd be happy.