Supreme Court rules that Catholic groups were unlawfully barred from a religious tax exemption

The Supreme Court ruled in favor of Catholic Church-affiliated charitable groups, saying they were wrongly denied religious exemptions from a Wisconsin tax that funds unemployment benefits.

WASHINGTON — The Supreme Court on Thursday ruled in favor of Catholic Church-affiliated charitable groups, saying they were wrongly denied religious exemptions from a Wisconsin tax that funds unemployment benefits.

The justices ruled unanimously that the state's decision unlawfully discriminated against the groups on the basis of religion under the free exercise clause of the Constitution's First Amendment.

The court rejected a Wisconsin Supreme Court decision that said that the groups operating under the Catholic Charities Bureau of the Diocese of Superior were not sufficiently religious in purpose. The state already provided exemptions for religious institutions.

The First Amendment has long been interpreted to exempt religious entities from taxation.

Writing for the court, liberal Justice Sonia Sotomayor noted the importance of the government remaining neutral when it comes to different religions.