[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2200 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2200

    To amend the Internal Revenue Code of 1986 to clarify that the 
 parsonage allowance exclusion is limited to the fair rental value of 
                             the property.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 18, 2002

  Mr. Baucus (for himself and Mr. Grassley) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to clarify that the 
 parsonage allowance exclusion is limited to the fair rental value of 
                             the property.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Clergy Housing Allowance 
Clarification Act of 2002''.

SEC. 2. CLARIFICATION OF PARSONAGE ALLOWANCE EXCLUSION.

    (a) In General.--Section 107 of the Internal Revenue Code of 1986 
is amended by inserting before the period at the end of paragraph (2) 
``and to the extent such allowance does not exceed the fair rental 
value of the home, including furnishings and appurtenances such as a 
garage, plus the cost of utilities''.
    (b) Effective Date.--
            (1) In general.--The amendment made by this section shall 
        apply to taxable years beginning after December 31, 2001.
            (2) Returns positions.--The amendment made by this section 
        also shall apply to any taxable year beginning before January 
        1, 2002, for which the taxpayer--
                    (A) on a return filed before April 17, 2002, 
                limited the exclusion under section 107 of the Internal 
                Revenue Code of 1986 as provided in such amendment, or
                    (B) filed a return after April 16, 2002.
            (3) Other years before 2002.--Except as provided in 
        paragraph (2), notwithstanding any prior regulation, revenue 
        ruling, or other guidance issued by the Internal Revenue 
        Service, no person shall be subject to the limitations added to 
        section 107 of such Code by this Act for any taxable year 
        beginning before January 1, 2002.
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