COURT RULES IN FAVOR OF PASTORS’ HOUSING ALLOWANCE

The tax exemption for ministers’ housing allowances gained more legal backing last week.

On Friday, March 15, the U.S. Court of Appeals for the Seventh Circuit affirmed the pastors’ housing allowance, unanimously reversing a lower court ruling that found the provision unconstitutional.

The decision rejected claims made by the Freedom From Religion Foundation that the tax law “renders unto God that which is Caesar’s” by granting a government benefit to a religious group.

“The tax code treats ministers the same as hundreds of thousands of nonreligious workers who receive tax-exempt housing for their jobs—that’s not special treatment, it’s equal treatment,” said Luke Goodrich, vice president and senior counsel at Becket.

Court Rules in Favor of Pastors’ Housing Allowance | Facts & Trends