Employment Division v. Rogue Valley Youth for Christ

Employment Division (Division) assessed unemployment compensation taxes against Rogue Valley Youth for Christ (YFC) as an “employer” subject to ORS ch 657. YFC requested a hearing. The referee found that YFC is a “church” within the meaning of ORS 657.072(1) (a) and therefore exempt from the taxes. Division seeks review, and we affirm.

Division contends that all religious organizations, including churches, are subject to the tax, because ORS 657.072(1)(a) unconstitutionally distinguishes between religious organizations that are churches and similar organizations that are not churches.1 ORS…