The Church Law Group

Minister Housing Allowance Ruled Unconstitutional

Written by Church Law Group on October 09, 2017 | Found in: Church Employment, Executive Compensation, General, Tax-Exemption

A Federal District Judge in Wisconsin has ruled the clergy housing allowance, outlined in section 107 of the Internal Revenue Code as unconstitutional.  Federal Judge Barbara Crabb stated in her decision that “…[section] 107(2) violates the establishment clause because it does not have a secular purpose or effect and because a reasonable observer would view the statute as an endorsement of religion.”


The case will likely be appealed.


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Church Law Group