Catskill, NY -- A neo-pagan group aimed at serving transsexuals has won a religious tax exemption from the state's highest court.

The Cybeline Revival, run by two women in the Town of Catskill, convinced the court that its 3-acre property should be tax free because it served as the worldwide headquarters for the tiny religion.

The unanimous decision highlights the balance between religious freedom and making sure individuals are not abusing the tax code for personal gain.

In this case, the town did not dispute that the women, known as "priestesses," had a genuine belief in pagan rituals.

However, lawyer Daniel Vincelette argued that the primary purpose of the property in question was to provide housing for the priestesses -- including one who worked for the state's tax department, in Albany. The property's 12-room inn also was open to others who needed housing.

Lots of religious groups have housing as part of their religious mission, the court noted. And the group had altars, literature and regular worship services.

Justice Robert S. Smith questioned why the court should not see the group's activities as primarily religious.

"They have the altars. They have -- they pray every night. What do nuns do that (the priestesses) don't do?" he asked during arguments in October.

Vincelette said nuns serve the community through teaching, nursing and other activities.

Justice Jenny Rivera noted that the pagans believe they do, too.

"Many of these rituals they have, they say, are public," she noted. "People might be able to walk on the grounds. They've got the cafe. They've got the -- I think it's the

bisexual brunch. It sounds like there's a lot of activity going on."

Vincelette responded that only a small group took advantage of the activities.

Rivera responded: "Let's say I go into a Catholic Church and there's only three people at Mass. Is that not still a Mass?"

The case involves a tax dispute from 2009 to 2012. A local court ruled against the group's request for a tax exemption. But an appeals court unanimously reversed the decision, granting the Cybeline Revival its exemption. The town appealed again to the Court of Appeals, the highest court in the state.

The court seemed cognizant that an overly-broad ruling could open the floodgates to people claiming tax exemptions on private property in the name of religion.

"We don't want someone to read this decision and then have all these communal living situations just sprout up as a way that we've endorsed some way to avoid real property taxes," Justice Victoria Graffeo noted.

But the group's lawyer, Deborah Schneer, noted that the group had spent a lot of time researching its faith and that the property's primary purpose was religious.

"This is not somebody just hanging up a crucifix or a Jewish star, a mezuzah on their building, and calling themselves a religious organization," she said.

In its decision, the court ruled that the property's primary purpose was clearly religious and the fact people lived there was merely secondary. The unanimous decision found that the group's tax-exempt status fell in line with precedent and the court did not modify any existing practices in determining tax exemption.