Supreme Court Narrows Religious Tax Exemption Case

Next June, the Supreme Court will hear a case that could significantly change the scope of tax exemptions for religious organizations.

The Catholic Charities Bureau, headquartered in Superior, Wisconsin, sought review from the U.S. Supreme Court after the Wisconsin Supreme Court denied its claim for a religious exemption from state unemployment taxes.

Under Wisconsin law, organizations that operate "primarily for religious purposes" are eligible for exemption from the unemployment tax system. However, the Wisconsin Supreme Court determined that the Catholic Charities Bureau does not qualify because its activities are not primarily religious. The court noted that the organization employs individuals who are not Catholic and does not engage in proselytizing.

In a concise order, the U.S. Supreme Court agreed to consider a limited aspect of the case. The review will focus solely on whether Wisconsin's denial of the tax exemption violated the First Amendment’s protection of religious freedom due to the state's criteria for defining religious activity.

READ MORE