Judge strikes down law that gives clergy members tax-free housing allowances

Wisconsin State Journal ^ | 11/23/13 | DOUG ERICKSON

[oldfart]

My wife is a 1/4-time Pastor of a small Methodist Church. They gave her the 1/4-time position so they wouldn’t have to ordain her and thus pay for her healthcare. Some months she doesn’t even get her paycheck. Fortunately, she has a second job which does offer a healthcare plan (at least for now).

[yldstrk]

It is common. My FIL who has NEVER had a church but is an ordained minister in a main stream religion claims it.

You must associate with honorable people. I used to be like you, thinking most people were honorable. Most people are NOT honorable.

[yldstrk]

No, it will only affect the Federal circuit it is in unless the decision is appealed to the Supreme Court and upheld. At this point, it is virtually meaningless.

[yldstrk]

She must have wanted the job. If she doesn’t like it, there are other jobs.............

[Charles Henrickson]

it will only affect the Federal circuit it is in unless the decision is appealed to the Supreme Court and upheld.

Thanks for clarifying that. It was unclear to me. Still, this has the real potential of being applied nationwide in the near future.

At this point, it is virtually meaningless.

Well, it will not be meaningless for all those congregations and pastors in the Western District of Wisconsin:

Adams County Ashland County Barron County Bayfield County Buffalo County Burnett County Chippewa County Clark County Columbia County Crawford County Dane County Douglas County Dunn County Eau Claire County Grant County Green County Iowa County Iron County Jackson County Jefferson County Juneau County La Crosse County Lafayette County Lincoln County Marathon County Monroe County Oneida County Pepin County Pierce County Polk County Portage County Price County Richland County Rock County Rusk County Sauk County Sawyer County St. Croix County Taylor County Trempealeau County Vernon County Vilas County Washburn County Wood County

And in our Lutheran Church-Missouri Synod, which is very strong in those counties of Wisconsin, it will be very meaningful.

[delchiante]

I have no doubt that most pastors aren’t being enriched financially by serving our Sovereign.. mansions are for your next life...some are hedging their bets.. they have their reward....

[afraidfortherepublic]

I wonder how this affects the MANSION that the President of Concordia University built for himself on campus in Mequon? I saw that house for the first time as I was searching for the entrance to the new baseball field there. It is the biggest home I have ever seen. I think it might dwarf the 19th century mansions of the Venderbults and the Rockefellers in the Hamptons. I’m guessing that it is at least 20,000 square feet.

[Jim from C-Town]

There should be no zero bracket. Everyone should be required to pay something in taxes if we are to have a confiscatory tax policy. Particularly when we have an income based tax policy.

Even a tax of fifty dollars a year would put everyone in the position of having ‘skin in the game’.

[Mom MD]

My son is headed to concordia seminary in St Louis this fall. I guess mom will have to cont to pay him a housing allowance even after he graduates...

[Charles Henrickson]

First, Mequon is in the Eastern District of Wisconsin, so apparently it would not come under this ruling. Second, this is the first I’ve heard about a house for CUW’s president, so I don’t know anything about when it was built, who authorized it, its size, its cost, etc.

[oldfart]

Oh yeah, she’s ALWAYS wanted such a job - except she doesn’t consider it a *JOB*. For her it’s a “calling” and she’s damned good at it.
It’s a small Church in a predominately black neighborhood. It’s been going downhill for years and the Bishop was just waiting for the last parishoner to die so he could close it down. He put my re-headed, fair-skinned wife in there in an effort to push the Church over the edge but she managed to INCREASE the membership plus pay the yearly apportionment AND donate some $$$ to a nearby Church that was having trouble paying their bills. The Bishop doesn’t quite know what to do with her now. The Board of Ordained Ministry has been giving her the runaround for years to make her give up but she’s determined to hang in there. Unlike a lot of Preachers I’ve met and known, she’s a Pastor and she’s a good one.

[tomsbartoo]

In reading this article and the posted comments, I noticed that there were no references to the Catholic Church. Now maybe they are impacted just like the Protestant religions, and they just weren’t mentioned. Somehow, I sense that is not the case.

I’m fairly sure that most pastors and priests live in a diocese-owned rectory, so a “housing allowance” wouldn’t appear to be in order, since they wouldn’t actually be paying the mortgage out of their salary. But maybe there’s more to it. If anyone has a complete and more accurate answer to this question I’d like to hear it.

[Charles Henrickson]

My son is headed to concordia seminary in St Louis this fall.

My alma mater! I live less than a half-hour from the sem.

[oldfart]

OOps! She’s red-headed, not re-headed. I think it makes a difference.

[Harmless Teddy Bear]

Clergy who live in parish or Church property may be next.

They will. And if the church it's self has a prophet chamber then it will be taxed as housing.

[mongrel]

This is not a regional ruling, it has national impact. It does not take effect until appeals are exhausted.

No matter your particular perspective on this particular tax break, the reasoning behind it should concern all conservatives. It is about freedom from religion not freedom of religion.

[afraidfortherepublic]

It is recently built. I've lived here for 27 years and had heard nothing about it. I spotted it for the first time as I was trying to get a look at the baseball stadium, which has been a thorn in the side of some of the neighbors (noise and BEER sold there, despite Concordia's prohibition). I stumbled across this gigantic house and learned that it was recently built for Dr. Charles Ferry. I suppose it belongs to the University. I swear that it is the size of a small hotel. All of that is tax-exempt, of course. I don't know exactly when it was built (in the last 5 years, I suppose) because I don't remember any announcement, or discussion about it.

I have nothing against a housing allowance for ministers, and I think that Judge Barbara Crabb is prejudiced against churches, as indicated from some of her other decisions. However, I do question taking large chunks of land off of the tax rolls just because it is owned by an educational, or religious, institution. Here, our School Board owns a huge chunk of land that they reserved for a 2nd high school whicih they will never need. They rent it out for agriculture and pay no taxes on it. Dr. Ferry's house is on a huge tract of land -- house and land are not taxed. Everybody and his brother wants to open a "nursing home" -- some of which are quite lavish and all of which have been taken off the tax rolls. It just makes the rest of us pay higher taxes.

This little town of 24 square miles has 2 universities and a Seminary occupying huge tracts of land. Then there are the public schools -- 4 elementary, 2 middle, and one high school -- plus the private schools (at least 4), not to mention all of the extra land they hold for "future" development.

Add to that a huge hospital, as well as multiple tax-exempt nursing, assisted living, and retirement developments and about 25 municipal parks and you can see that much of our open space is off the tax rolls. It it the main reason that that the rest of us pay such high taxes.

In the 27 years I've lived here, the parks have increased from 2 small locations to more than 800 acres that are kept mowed weekly requiring costly machinery, gasoline, labor, etc. Verious groups acquire land, name it for one of their favorites, and donate it to the City. Not only does it come off the tax rolls, the City then has to maintain it ad infinitum. It is costly. Sometimes you have to say, "Enough!"

[Mom MD]

His great grandfather went to the same sem. I may PM you as it gets closer to ask about areas to live in......

[lightman]

This provision of the tax code applies to only two categories of persons: military officers and ordained clergy.

The latter may claim housing allowance only for income received in performance of sacredotal duties (ie, not for teaching religion in a community college); and then only up to the amount established by the governing body prior to payment or the actual expenses, whichever is less.

At one time there was a third limitation, that of the “fair market rental value” of the house plus utilities, but that was abolished by the SCOTUS in U.S. vs. Warren.

Warren is Rev. Rick “The Purpose-Driven Life” Warren.

[Harmless Teddy Bear]

Most Roman Catholic churches have a rectory on the church grounds.

However, if the housing allowance for living off church property is taxable then so is the "non-monentary compensation" given by the church who provides housing for them.

More and more they are expanding what is defined as taxable salary. A company I use to work for would allow you to take home surplus stuff from test production runs and left over promotional items. Not any more. Taking home a t-shirt with the company logo is now "non-monentary compensation" and taxed.

Does your company sell food and are were you allowed to take home produce that was on the verge of going bad? Get out your check book. The IRS says that those apples are taxable.

Did a client bring you cookies? Taxable.