A Wisconsin ruling on Catholic Charities raises the bar for religious tax exemptions

A ruling by the Wisconsin Supreme Court is raising the bar for religions to show that their charity arms deserve tax exemptions. The state Supreme Court on Thursday rejected a Catholic charities organization's claim that it doesn't have to pay unemployment taxes because it's a religious operation. The Superior-based Catholic Charities Bureau manages nonprofit organizations that serve older, disabled and poor people. A judge ruled earlier that the bureau and four subentities operate for religious purposes. That triggered a clause that exempts them from having to pay taxes that support unemployment benefits. The state Supreme Court ruled 4-3 that the bureau and subentities are obligated to pay those taxes.