Appeals court saves clergy tax-free housing allowance

By The Christian Post

Pastor Chris Butler, who oversees a ministry in Chicago, Illinois. | Courtesy of Becket

The U.S. Court of Appeals for the Seventh Circuit ruled Friday that a law giving clergy an exemption from paying income taxes on their housing allowance is constitutional. The ruling protects religious leaders nationwide from having to pay nearly $1 billion more each year in taxes.

The court’s unanimous decision in the case Gaylor v. Mnuchin reversed a district court’s ruling in 2017 in favor of the atheist legal group Freedom From Religion Foundation, which argued that excluding pastors’ housing allowance from their taxable income was unconstitutional.

A group of clergy who rely on the housing allowance appealed that decision to the Seventh Circuit and were represented by the law firm Becket.

Source:The Christian Post