Whoomp! There It Is!
The “Parking Tax” will be repealed by Saturday, December 20, 2019! This is a great Merry Christmas from the U.S. Government to many, many exempt organizations.
The repeal is included in what we’ve come to call “extender legislation” each year. It includes the extension of various tax provisions that were set to end.
In what is apparently entitled, “Taxpayer Certainty and Disaster Tax Relief Act of 2019,” proposed Section 302 states:
Sec. 302. Repeal of Increase in Unrelated Business Taxable Income for Certain Fringe Benefit Expenses.
(a) IN GENERAL – Section 512(a) is amended by striking paragraph (7).
(b) EFFECTIVE DATE – The amendment made by this section shall take effect as if included in the amendments made by section 13703 of Public Law 115-97.
**That sounds to us like RETROACTIVE! (As if it never was!)
The United States Senate Committee on Finance (Senate Finance Committee Chuck Grassley) reported today…
“We found a path to extend a small but significant set of policies by negotiating through midnight last night. This may not be the package I’d have pushed for on my own, but it’s a reasonable way forward that provides certainty where before there was only anxiety for many Americans.”
The package includes (among other things)…
· Resolution of tax-exempt organization parking tax;
Forbes on-line just reported (12/17/19), “The extenders bill would also seek to undo an unpopular provision which resulted in a tax on employer-provided parking for nonprofit organizations. Under the TCJA, employee parking was subject to a 21% unrelated business income tax (UBIT). The parking tax provision would be repealed.”
Again, the present appears to be under the tree, but we can’t open it just yet – the House needs to pass it, the Senate needs to pass it, the President needs to sign it. It is expected that this will occur by the end of the week! Hallelujah!!