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![handle is hein.journals/jclon22 and id is 1 raw text is: MINISTERIAL MAGIC: TAX-FREE HOUSING AND RELIGIOUS
EMPLOYERS
Bridget]. Crawford and Emily Gold Waldman*
ABSTRACT
Relig ou orga ,nima e ia,; v o -/h * fame benefil. lha o/her nm-pro/i/ oigizaimn. do (. Cnrhur. /emple
and moue.,J) e ample, geneal!; ae e emp/from local ra a / Economicall; .|pea.ing. amsq / euemp
lion ha. /he .nme effca. a _uid;;fredomr /aA liaili|; mean /ha/ /eoaniza/ion can deol i/.|finanial
enu u,, ,/ u/her a/i/. u/ where an eeion a Jarrde /0 a reliinou emplq; i broadr/han /he equivali
e<mpio||n avilale! lo a .uear empflqvee. a (1in E an/ G/alishmen/ Clau concen i ,saie ed. Th nrsnage
e emp/ion of in/ernal Revenue od|e \ecion 107 (,;, n. .zu,h an issue. mini.|er|; ar pimi||e||o eud c|ha.
hou.aing allow ane<fm /he;oir /I|arale inome a a ma//er <f coui.e een Ihughi /he equiv aleif eoese ieonn log
uecular emilqyee. are far more lnniuIi/e ;. ,hwe :e in (a ;eo . \hi he Uni/ed \/ag Couri q
.ppeal.sr /he Svn/ Circ il rejec/ed /heI a1gumn/ /h|Ia/ /he pta.uonage e remp/|on violae< /h EInI/abl.lheln/ n
C lauue hi~ En I ay ;ealuae. /hen uu/'. rea.wning and| .ugges. /hr|Ia/| /he dcown minimied/h e/en/ l| |o wich I
/hepaioage euemp/inpride.l ac/we gvernmn/al .upploaor/ reln ion nion, we algue. ed oa
di.6/or/ed E|abli.hmn/n| Caun anal; i.9 and|I /h wmng r.ul/ u! I e alm adre.n an i.nu lurk.ing in /he b~ack.ound:
/he in/er.uec/in be/wee /h p In|arsnage e<emio|n and| u i.crina/ion. give<n /hta/ .wom religwon do no/ permi/
wn, /o . ei''in rli u.leaderih|> m /ha would qual /hein as mnea undre/n 107. Al/hou,h he
/ er tn.a / u/ inal agumn/ agains/ /he pa onage eixemp/ion .sems from /he E 'ta (lia n se, laub.ot ibo/h e
rais~e impor/an/ policy conems/..
INTRODUCTION
The parsonage exemption is a little-known but substantial tax ben-
efit for religious entities in the United States. The exemption, contained in
Internal Revenue Code Section 107, allows ministers of the gospel to ex-
clude the value of their housing benefits from their taxable income, even
when those benefits take the form of a housing allowance rather than physical
housing.' A Treasury Department report estimates that, in the aggregate, the
©2018, BridgetJ. Crawford and Emily Gold Waldman. All rights reserved.
Bridget Crawford is the James D. Hopkins Professor of Law at the Elisabeth Haub School of Law at
Pace University. Ph.D., Griffith University, 2013; J.D., University of Pennsylvania School of Law,
1996; B.A., Yale University, 1991. Emily Waldman is a Professor of Law and the Associate Dean
for Faculty Development & Operations at the Elisabeth Haub School of Law at Pace University.
J.D., Harvard Law School, 2002; B.A., Yale University, 1999.
26 U.S.C.A. @ 107(2) [hereinafter IR.C.].
101](ViewImageLocal?handle=hein.journals/jclon22&div=1&collection=&method=preview&ext=.png&size=3)