Weston v. Charleston
Weston v. Charleston is a significant Supreme Court case that addressed the issue of state taxation on federal securities. In this case, the city of Charleston, South Carolina, attempted to impose a tax on the earnings from bonds issued by the U.S. government. The Supreme Court, in a 4-2 decision, ruled that this tax was unconstitutional, reinforcing the principle established in the earlier case of McCulloch v. Maryland. The ruling emphasized that states and their subdivisions do not have the authority to tax federal instruments. Chief Justice John Marshall authored the opinion during a time when the Court was functioning with only six justices due to a vacancy. The dissenting opinions were voiced by Justices William Johnson and Smith Thompson. This case highlights the ongoing legal debate surrounding state versus federal powers and the protection of federal financial instruments from state taxation.
Weston v. Charleston
Date: March 18, 1829
Citation: 27 U.S. 624
Issue: Tax immunities
Significance: The Supreme Court reaffirmed an earlier ruling in holding that states could not tax instruments of the federal government.
The city of Charleston, South Carolina, sought to place a tax on the earnings from bonds issued by the U.S. government. The Supreme Court, by a 4-2 vote, ruled that this tax was unconstitutional. It reaffirmed its holding in McCulloch v. Maryland (1819) that states and their subunits could not tax an instrument of the United States. Chief Justice John Marshall wrote the opinion for the Court at a time when there were only six members because of the death of Robert Trimble. Justices William Johnson and Smith Thompson dissented.