A federal court of appeals has rejected an atheist group\u2019s lawsuit seeking to strike down a 60-year-old tax provision protecting ministers, notes the Becket Fund. The ruling allows ministers of all faiths to continue receiving housing allowances. \u201cThis is a great victory for separation of church and state,\u201d\u009d said Luke Goodrich, Deputy General Counsel of the Becket Fund of Religious Liberty. \u201cWhen a group of atheists tries to cajole the IRS into raising taxes on churches, it\u2019s bound to raise some eyebrows. The court was right to send them packing.\u201d\u009d<\/p>\n
Aside from the question of constitutionality, the clergy exemption raises a question that many people \u201d\u201d whether religious or not \u201d\u201d are likely to be wondering: Why exactly do ministers receive a tax exemption for their housing allowance?<\/p>\n
To answer the question we must first consider how taxation of church property, including clergy housing, has historically been considered.<\/p>\n