The Rev. Tisha Brown views it as one small way society acknowledges the contributions of religious organizations. Every year, in addition to her annual taxed salary, the Madison pastor gets a cash housing allowance from her church that is exempt from the federal income tax. This year, her salary is $38,867, her housing allowance $19,430.
Congress has offered this tax break to all clergy members — ministers, rabbis, imams — for decades, a perk that collectively lessens their tax burden by about $700 million annually, according to a recent congressional estimate. Now, that tax break is in jeopardy.
Last month, in a ruling that has rippled through the national clergy community, a federal judge found the housing allowances unconstitutional. The lawsuit was brought by the Madison-based Freedom From Religion Foundation, an organization that litigates aggressively.