In the case of Board of County Commissioners et al. v. Seber et al., 1942, the U.S Supreme Court was tasked with deciding whether a county could tax Indian lands held in trust by the federal government. The land in question belonged to members of the Klamath Tribe and was located within Klamath County, Oregon. The tribe argued that as their land was held in trust by the United States government, it should be exempt from local taxation under federal law protecting tribal property rights. The court ruled against this argument stating that while Congress had indeed intended for these lands to be free from state and local interference when they were placed into trust status, there existed no explicit exemption from taxation written into law at that time or since then which would apply here. Therefore, despite being held in trust by the Federal Government on behalf of Native American tribesmen who are considered wards of said government; such properties can still legally be subjected to county taxes unless specifically exempted through legislation.

In the dissenting opinion for Board of County Commissioners et al. v. Seber et al., Justice Frank Murphy argued that the majority's decision to uphold a tax assessment on Indian lands was inconsistent with federal law and policy towards Native American tribes. He contended that such taxation violated treaties between the U.S government and these tribes, which guaranteed their right to self-governance and protection from state interference in tribal affairs. Furthermore, he pointed out that Congress had never explicitly authorized states to impose taxes on reservation lands or resources owned by Indians themselves, even if they were held in trust by the federal government. Therefore, he concluded that this case represented an unwarranted intrusion into tribal sovereignty and a breach of faith with America’s indigenous peoples.