I'd be happy if in the west we just stopped the state from financially subsidising religions - though I could imagine the uproar against any formal proposal to do so.
Property taxes - along with local council rates - are an area that religions obtain significant financial benefit from the state (definitely in AU, and I believe UK and US also).
It seems to be one of those things that fits the category 'this is how it's always been done', so it's tremendously difficult to initiate any policy change.
One important thing is that the state in France owns most/all the churches built before 1905, so they end up paying a lot for renovation. Also keep in mind that the Alsace-Lorraine was not part of France in 1905 (part of the German empire), so the separation was never applied there.
