MERRIAM, Kan. (CNS) — A proposal in the Kansas Legislature that would repeal the sales tax exemption for churches and religious nonprofit organizations is bad public policy, shortsighted and probably unconstitutional, according to the Kansas Catholic Conference.

In a March 4 legislative alert, the agency representing the bishops of Kansas’ four Catholic dioceses said the proposal “would seriously undermine the ability of religious groups to serve Kansas’ most vulnerable citizens in these very difficult times.”

House Bill 2549 was amended in the House Committee on Taxation to continue the tax exemption for nonprofit organizations that were not religiously affiliated, leaving churches and religious nonprofits such as Catholic Charities subject to the state’s 5.3 percent sales tax. The bill also would repeal the sales tax exemption for residential utilities, lottery tickets, some recreational fees, public libraries and several other categories.

The taxation committee reported the bill back to the House “without recommendation” — meaning that its members neither supported nor opposed the legislation. As amended, the bill would raise an estimated $169 million a year. The state has a nearly $500 million budget shortfall projected for fiscal year 2011, which begins July 1.