A Wisconsin ruling on Catholic Charities raises the bar for religious tax exemptions.
Exemptions that allow religious organizations to avoid paying Wisconsin’s unemployment tax don’t apply to a Catholic charitable organization because its on-the-ground operations aren’t primarily religious, a divided state Supreme Court ruled Thursday.
The outcome of the case, which drew attention and concern from religious groups around the country, raises the bar for all religions to show that their charity arms deserve such exemptions in the state. The Catholic organization’s attorneys immediately promised to appeal directly to the U.S. Supreme Court. If that court agrees to hear the case, any ruling could have broad national implications.
The Wisconsin court ruled 4-3 that the Superior-based Catholic Charities Bureau and its subentities’ motivation to help older, disabled and low-income people stems from Catholic teachings but that its actual work is secular.
“In other words, they offer services that would be the same regardless of the motivation of the provider, a strong indication that the sub-entities do not ‘operate primarily for religious purposes,'” Justice Ann Walsh Bradley wrote for the majority.
Religious groups around the country are watching the case, including Catholic Conferences in Illinois, Iowa, Michigan and Minnesota, the American Islamic Congress, the Church of Jesus Christ of Latter-day Saints, the International Society for Krishna Consciousness, the Sikh Coalition, and the Jewish Coalition for Religious Liberty.
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