The Supreme Court agreed Friday to decide whether religious affiliated entities like Catholic Charities should be exempt from state unemployment taxes, taking up its first major religion case in more than a year.

Patrick Elliott of the Freedom From Religion Foundation said that a decision favoring Catholic Charities could open the door to challenges against other taxes imposed on religiously affiliated entities, including hospitals and universities, and may result in the removal of employees from the state unemployment insurance system.

The conservative U.S. Supreme Court, which has repeatedly ruled for religious claims that limit duties set by government, may free Catholic charities from paying the taxes.