McCulloch vs Maryland

Can the States tax federal institutions or property?

Issue

A bank was chartered by the National government in 1819 in Maryland. Later the same year, the state of Maryland imposed a tax on the bank. The cashier, James W. McCulloch, refused to pay the tax.

Decision

It was unanimously decided that the Supreme Court would move in favor of McCulloch. The state of Maryland was unable to tax government property and institutions.

Impact

States cannot impose taxes on federal institutions and property within said state.
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