I'm fine with it within certain limits. As it pertains to houses of worship, it's alright - technically these are the same as not-for profit organizations, for the most part at least. On the other hand, things like Bibles being sales tax exempt in my state is kind of ridiculous. EDIT: Looking it up again the sales tax thing was declared unconstitutional a couple years ago, though it was on the books for a good long while.
I kind of agree with Dibble. I would have a "St. Luke's Bowling Alley" being tax exempt, but not "St. Luke's Church," or "St John's Soup Kitchen."
