High Court Asked to Hear Religious Exemption Case

 

Constitutional liberty advocates are rallying behind a Catholic charitable organization denied a tax exemption by state officials who judged it to be insufficiently religious. Following a defeat in Wisconsin's highest court, the nonprofit's attorneys at the Becket Fund for Religious Liberty are now asking the U.S. Supreme Court to hear the case. 

"It shouldn't take a theologian to understand that serving the poor is a religious duty for Catholics," said Eric Rassbach, a senior counsel at Becket. "But the Wisconsin Supreme Court embraced the absurd conclusion that Catholic Charities has no religious purpose."  

"We're asking the Supreme Court to step in and fix that mistake," he added. 

Catholic Charities in Wisconsin had requested an exemption from paying into the state's unemployment insurance program to enroll in a similar church program. However, Wisconsin officials denied the tax exemption, and a 4-3 Wisconsin Supreme Court ruling upheld that decision. The majority of the state justices ruled that the organization's activities indicated it was "not operated primarily for religious purposes." 

Appealing the case to the U.S. Supreme Court, Becket noted a deepening divide in state courts as to what constitutes "religious purposes." While some look at sincerity of belief, Wisconsin, in this case, judged Catholic Charities on actions that it did not think were "typical" for a primarily religious organization in matters like hiring, evangelizing, and delivery of services.  

"The court held that because Catholic Charities provides services that 'can be provided by organizations of either religious or secular motivations,' those services do not have a religious purpose," Becket's appeal said. "Put another way, it doesn't matter if Catholic Charities gives a cup of water in Jesus' name, because non-religious charities offer cups of water, too." 

Others are similarly critical. For example, a dissenting Wisconsin state justice, Rebecca Grassl Bradley, derided the majority's religious purpose test as discriminatory and as one that "requires courts to answer theological questions well beyond the judiciary's purview."  

"The majority exercises the power of the legislature… and proclaims itself the arbiter of what is and is not religious," Bradley wrote. "Whatever authority the majority believes it possesses to assume these roles is not found in the Wisconsin Constitution." 

The Wisconsin Legislature is also displeased with the ruling that "blatantly misinterprets" the exemption it included in state law to protect religious freedom. Writing to the U.S. Supreme Court in support of Catholic Charities' appeal, it declared that it "has a strong interest in vindicating its law and holding the court below accountable for its misinterpretation." 

The state of Wisconsin is due to file its reply to Becket's appeal next month, and then the high court justices may consider whether the case is ripe for consideration. ECFA will monitor this court battle and remain a voice for religious liberty.

 

This text is provided with the understanding that ECFA is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.