In Asylum v. New Orleans, the United States Supreme Court was asked to decide whether a city could impose a tax on a charitable organization. The case involved the Asylum of the Sisters of the Holy Family, a charitable organization that provided care for the elderly and the poor in New Orleans. The city had imposed a tax on the Asylum, which the Asylum argued was unconstitutional. The Supreme Court held that the tax was unconstitutional. The Court reasoned that the tax was a violation of the Fourteenth Amendment's Equal Protection Clause, which prohibits states from denying any person the equal protection of the laws. The Court found that the tax was discriminatory because it was imposed on the Asylum, but not on other charitable organizations. The Court also found that the tax was not necessary to raise revenue for the city, and that it was an unreasonable burden on the Asylum. The Court concluded that the tax was unconstitutional and that the Asylum was entitled to an exemption from the tax. The Court's decision established that charitable organizations are entitled to the same protections as other citizens under the Equal Protection Clause.

In Asylum v. New Orleans, the Supreme Court was tasked with determining whether a city could tax property owned by a church that had been incorporated in another state. The majority opinion held that such taxation was unconstitutional because it violated the Privileges and Immunities Clause of Article IV of the Constitution. However, Justice Field dissented from this decision on two grounds: first, he argued that there was no evidence to suggest that Congress intended for churches to be exempt from taxation; second, he asserted that even if they were so exempted, it would be up to each individual state legislature to decide how much or little tax should be levied against them. He concluded his dissent by noting that while states may not interfere with interstate commerce or impose discriminatory taxes on out-of-state entities as prohibited under Article IV's Commerce Clause, they are still free to levy taxes upon any property within their jurisdiction regardless of its ownership status.