Gay marriage church tax status

But many social conservatives saw the ruling as a threat to religious institutions like churches and schools, whose tax-exempt status as non-profits they believe could be at risk. Why are conservative groups nervous? In , the Supreme Court ruled that a fundamentalist Christian university in South Carolina that barred interracial marriage and dating, Bob Jones University, could not hold onto its tax-exempt status. Verrilli Jr. It is —it is going to be an issue. Many conservatives argue that churches and other religious institutions that hold marriage is between a man and a woman could be subject to scrutiny.

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Will the Supreme Court Decision on Same-Sex Marriage Affect Tax Exemption for Religious Organizations?

Gay Marriage Decision Is Right Time to End Religious Tax Exemptions | Time

Bob Jones University was the subject of a Supreme Court decision about whether the IRS could revoke its exempt status because of racially discriminatory policies. These institutions did not meet the requirement by providing "beneficial and stabilizing influences in community life" to be supported by taxpayers with a special tax status. The schools could not meet this requirement due to their discriminatory policies. The Court declared that racial discrimination in education violated a "fundamental national public policy. Hence, the Court found that "not all burdens on religion are unconstitutional.
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Why Conservatives Are Nervous About Church Tax Breaks

In the wake of Obergefell , in which the Supreme Court held that states must license same-sex marriages and recognize such licenses issued by other states, some advocates quickly moved on to new territory, calling for the revocation of tax exemption for religious institutions and churches that do not support same-sex marriage. It has already been pointed out that the arguments of those advocating for the revocation of tax exemption are flawed. Regardless, it is certainly not a good idea.
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The Commissioner has explained that such private practices do not violate fundamental public policy, and that the recent decision in Obergefell v. Hodges [2] does not change this result. The Commissioner is correct. Indeed, under well established law, he is obliged to reach this conclusion. As a threshold matter, there can be a public policy justifying denial of a tax exemption only if a statute duly enacted by Congress establishes such a policy.
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