The case of Citizens National Bank of Cincinnati, Administrator of Anderson v. Durr, as Former Auditor et al., 1921 revolved around the issue of taxation and its legality under certain circumstances. The plaintiff was a bank acting as an administrator for Mr. Anderson's estate which held bonds issued by Kentucky municipalities that were tax-exempt in their state but not in Ohio where they were being administered. The defendant was the former auditor who had imposed taxes on these bonds. The Supreme Court ruled against the plaintiff stating that it is within a state’s rights to tax property located within its borders even if such property has been exempted from taxation by another state where it originated or is legally domiciled. This decision upheld Ohio's right to impose taxes on these out-of-state municipal bonds.

In the dissenting opinion for Citizens National Bank of Cincinnati v. Durr, Justice Holmes disagreed with the majority's decision to reverse a lower court ruling that had upheld an Ohio law taxing intangible property at its location rather than where it was managed. He argued that there was no constitutional issue involved and believed that states should have the right to tax such properties as they see fit. He further contended that if a state chooses not to impose taxes on certain types of property within its borders, it does not mean another state cannot do so. Holmes also noted his belief in upholding precedent unless there is compelling reason otherwise; he did not believe such reason existed in this case.