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Trump Signs Repeal of 'Parking Lot Tax' for All Houses of Worship, Nonprofits

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A few days before Christmas, Congress gave churches and other nonprofits a break by repealing the so-called "parking lot tax" that was an unintended side effect of the 2017 Republican tax cut measure. President Donald Trump signed the repeal into law.

The measure would have required houses of worship and other nonprofits to pay a 21 percent tax on employee benefits such as parking spaces and transit subsidies, according to the website

The repeal was a part of appropriations bills for the new year, passed by both the House and Senate. The bill requiring the repeal was sponsored by Rep. Bill Pascrell, Jr. (D-NJ).  Since the bill is retroactive, the IRS will provide instructions on how churches can claim a refund on taxes they paid for the last two years because of the "parking lot tax."

Churches and evangelical leaders praised the government's action.

"This repeal comes as a welcome relief for millions of Americans, lifting this burden from nonprofits and houses of worship around the country," said Russell Moore, president of the Ethics & Religious Liberty Commission. "Churches must never again be seen as untapped sources of government revenue."

Moore also thanked House and Senate leaders, as well as other elected officials, who "worked hard on this issue. And I'm glad to see the President formalize this repeal with his signature."

"In these contentious days, finding a bipartisan area of agreement in Congress is worth celebrating," he said. 

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About The Author

Steve Warren is a senior multimedia producer for CBN News. Warren has worked in the news departments of television stations and cable networks across the country. In addition, he also worked as a producer-director in television production and on-air promotion. A Civil War historian, he authored the book The Second Battle of Cabin Creek: Brilliant Victory. It was the companion book to the television documentary titled Last Raid at Cabin Creek currently streaming on Amazon Prime. He holds an M.A. in Journalism from the University of Oklahoma and a B.A. in Communication from the University of