Walz v. Tax Comm'n
In Walz v. Tax Comm'n, 397 U.S. 664 (1970), the U.S. Supreme Court held that the government may accommodate religion by granting property tax exemptions to religious organizations for religious properties. This accommodation in the form of tax exemptions does not violate the Establishment Clause.
The Court in Walz stated that "there is room for play in the joints productive of a benevolent neutrality which will permit religious exercise to exist without sponsorship and without interference." Id. at 669.