The Italian Catholic Church will be stripped of an historic tax exemption from 2013

I never understood why the Christian business should be exempt. There should to be records of donations and no exemptions for donations unless it's going to 100% charity and no exemptions for business (evangelizing and money appeals) or political activities.

The Church currently pays tax on several properties it owns that are commercial enterprises but is exempt if at least some of the activities on the property are "non-commercial" -- for example a chapel in a hotel.

"The regulatory framework will be definite by January 1, 2013 - the start of the fiscal year - and will fully respect the (European) Community law," Prime Minister Mario Monti's government said in a statement late Tuesday.

In February, the government had amended Italy's property tax law to end the Church's privileges amid rising calls for the Vatican to share in debt crisis sacrifices and in the face of intense scrutiny from the European Commission.

On Monday the Council of State, Italy's highest ranking court for administrative litigation, rejected the decree. But the government insisted everyone would pay property tax, Church included.