National Baptist Convention U.S.A., Inc. v. Arkansas Employment Security Division

Donald L. Corbin, Judge.

This is an appeal from a decision denying appellant an exemption from the payment of contributions on wages earned by employees of the National Baptist Hotel and Bathhouse. Appellant seeks exemption from payment of such taxes by virtue of Ark. Stat. Ann. § 81-1103 (i) (D) (i) (I) which reads as follows:

(D) For the purposes of paragraphs (B) and (C) the term “employment” does not apply to service performed:(i) in the employ of (I) a church or convention or association of churches, or (II) an organization which is operated primarily for religious purposes and which is…