Repeal of “Parking Lot Tax” may be imminent.

Image courtesy of Adobe Stock.

Breaking news today suggests the so-called parking lot tax, which creates a tax liability for charities in certain circumstances for the cost of parking provided to employees, might be repealed shortly.

First hint in the air was an email from ECFA saying the House Ways and Means Committee had dropped a separate bill to repeal the tax. Instead, the repeal was incorporated into the overall budget bill. That would make the parking lot tax repeal invisible in light of the overall budget issue.

Second tip was a twitter post from Michael Batts, CPA with a link to blog post from Batts, Morrison, Wales & Lee, CPAs.  The article said a deal on Capitol Hill would repeal the tax and said repeal would probably be retroactive.

Later today multiple news articles reported the House had passed the $1.4 trillion spending bill. One article said the spending bill does include parking lot tax repeal.

That is a lot of partial reports, none of which I can really lean on. However, it looks promising.

Stay tuned.

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