Facts
By decision of October 16, 1991, the State Council of the Canton of Geneva exempted the X. association (hereinafter: the Association) from cantonal income and wealth taxes for a period of five years, on the grounds that its activity could be classified as being of public utility. This exemption was extended for a further five-year period by decision of May 11, 1995. However, the State Council refused to extend the Association's exemption by decision of January 10, 2001, considering that its activity was neither of public utility nor of public service. The Association contested this decision, but the State Council ultimately revoked the tax exemption with immediate effect on February 21, 2001, on the grounds that the pursuit of a religious purpose should exclude any sectarian drift.Considerations
The Federal Tribunal upheld the Association's administrative appeal and annulled the State Council's decision. It considered that the exemptions provided for in Art. 23 para. 1 LIFD are exhaustive and mandatory, and that the cantons cannot establish a procedure that contradicts their characteristics. In particular, the fact that the legal entity concerned has a right to the exemption, if it meets the conditions, gives the decision that recognizes or denies it this right an essentially legal - and not political - character, which must be subject to judicial review.
The Federal Tribunal therefore considered that Art. 9 para. 3 of the Geneva law on the taxation of legal entities, which…