In the 1944 case of Charleston Federal Savings & Loan Association et al. v. Alderson, State Tax Commissioner, the United States Supreme Court ruled on a dispute involving taxation and federal savings and loan associations in West Virginia. The state had imposed an ad valorem tax on shares held by members of these institutions, which was challenged as being unconstitutional under federal law that exempted such shares from state taxation. The court upheld the constitutionality of this tax, ruling that it did not infringe upon any rights or privileges granted to shareholders by federal legislation. It concluded that while Congress could protect these associations from discriminatory taxes designed to impede their operations, it could not shield them entirely from non-discriminatory taxes levied for general revenue purposes.

In the dissenting opinion for Charleston Federal Savings & Loan Association et al. v. Alderson, State Tax Commissioner (1944), it was argued that the majority's decision to exempt federal savings and loan associations from state taxation violated principles of federalism by extending a privilege to these institutions not granted to their state-chartered counterparts. The dissent contended that this created an unfair competitive advantage for federally chartered institutions over those chartered by states, undermining the balance between state and federal powers established in our constitutional system. Furthermore, they expressed concern about potential revenue loss for states due to this exemption which could negatively impact public services funded through tax revenues.