Tax exemption and religious nonprofits

Visitors to this site have not doubt seen suggestions that churches should lose their tax exempt status, especially when church leaders make political prouncements. Well, it looks like one state may try it: Kansas wants sales tax from religious nonprofits.

Anyone who has looked at a state budget recently though sees this as an economic move and not particularly ideological. Kansas is looking at nearly a $500 million budget shortfall next fiscal year, and the bill in question also removes the sales tax exemption for residential utilities, lottery tickets, some recreational fees, public libraries and several other categories.

Proponents of the bill say it will net an additional $169 million a year.

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