Daily Tax Report ®

House Democrats Take New Aim at Church ‘Parking Tax’ (3)

Feb. 14, 2019, 8:23 PMUpdated: Feb. 14, 2019, 10:59 PM

A tax that has drawn the ire of churches and nonprofits would be on the chopping block under a bill from House Democrats.

House Majority Whip James E. Clyburn (S.C.), Yvette Clarke (N.Y.), and Ways and Means member Tom Suozzi (N.Y.) reintroduced a bill (H.R. 1223) to repeal tax code Section 512(a)(7), a provision that has drawn fire since its inclusion in the 2017 tax overhaul.

The code section imposes a 21 percent tax rate on some of nonprofits’ so-called fringe benefits—such as free parking and mass transit subsidies—that they provide to employees. Nonprofits previously haven’t...

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