21 percent federal tax on church, nonprofit parking spaces creating confusion in SC
David Thompson predicts that designated parking spots for pastors in Charleston, the so-called “Holy City,” may soon disappear as churches realize they can’t afford a new tax on employee parking.
“It’s a 21 percent tax on that spot that says ‘preacher parking,’ ” said Thompson, the vice president of public policy for the National Council of Nonprofits.
“The churches have said it’s nuts, and we believe they’re right,” he said.
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The law went into effect last year, but 2019 is the first tax season where these traditionally tax-exempt organizations find themselves trying to untangle what they may owe the federal government.
“Most of them don’t even know about it,” said Madeleine McGee, president of Together SC, which advocates for South Carolina nonprofits.