In City of Washington v. Dennison, the Supreme Court of the United States was asked to decide whether the City of Washington had the authority to impose a tax on the property of a non-resident. The case arose when the City of Washington attempted to collect a tax from a non-resident, William Dennison, on the value of his property located within the city. Dennison argued that the City of Washington did not have the authority to impose a tax on the property of a non-resident. The Supreme Court held that the City of Washington did not have the authority to impose a tax on the property of a non-resident. The Court reasoned that the City of Washington was a municipal corporation and, as such, was limited to the powers granted to it by the state legislature. The Court found that the state legislature had not granted the City of Washington the authority to impose a tax on the property of a non-resident. Therefore, the Court held that the City of Washington did not have the authority to impose a tax on the property of a non-resident. The Court's decision in City of Washington v. Dennison established that municipal corporations are limited to the powers granted to them by the state legislature. This decision has been cited in numerous subsequent cases involving the authority of municipal corporations.

In City of Washington v. Dennison, the Supreme Court was asked to decide whether a city could be held liable for damages caused by its negligence in failing to keep streets and sidewalks safe. The majority opinion found that cities are not liable for such damages because they do not owe a duty of care to individuals who use their roads or sidewalks. However, Justice Field dissented from this ruling and argued that cities should be held responsible when they fail to maintain public safety on their streets and sidewalks. He reasoned that since citizens pay taxes which support the maintenance of these areas, it is only fair that those same citizens receive protection from any harm caused by negligent upkeep or lack thereof. Furthermore, he noted that if municipalities were allowed to escape liability due to an absence of legal responsibility then there would be no incentive for them take proper care in maintaining public spaces - something which is essential for ensuring the health and safety of all citizens using them.