Supreme Court Backs Catholic Charity Denied Exemption in Tax Case

New York Times

2 days ago

The Supreme Court unanimously ruled on Thursday that a Catholic charity in Wisconsin was entitled to a tax exemption that had been denied by a state court on the ground that its activities were not primarily religious.
The Wisconsin Supreme Court had ruled that the group's activities were 'primarily charitable and secular' and that it did not 'attempt to imbue program participants with the Catholic faith.' Indeed, the state court said, the group employed and served people of all religions.
That meant, the state court found, that the group should be denied the tax exemption even as it accepted the charity's contention that its services were 'based on Gospel values and the principles of the Catholic social teachings.'
The case was one of three concerning religion heard by the justices this term, and it extended a remarkable winning streak at the court for religious people and groups.
Another case, about whether parents in Maryland have a religious right to withdraw their children from classes when books with gay and transgender themes are discussed, will be decided in the coming weeks.
In the third case, the justices deadlocked in May by a 4-to-4 vote over whether a Catholic charter school in Oklahoma passed constitutional muster, letting stand a state court ruling against the school but setting no national precedent.
The Wisconsin case, Catholic Charities Bureau v. Wisconsin Labor & Industry Review Commission, No. 24-154, concerned a state law that exempts religious groups from state unemployment taxes so long as they are 'operated primarily for religious purposes.'
Catholic Charities Bureau, the social ministry of the Catholic Diocese in Superior, Wis., has said its mission is to provide 'services to the poor and disadvantaged as an expression of the social ministry of the Catholic Church.' But state officials determined that the charity did not qualify for the exemption because it 'provides essentially secular services and engages in activities that are not religious per se.'
When the case was argued in March, a lawyer for the state acknowledged that the charity would qualify for the exemption if it were part of the church rather than a separate corporation. But he said there must be principles that separate religious institutions from others.