In County of Calhoun et al. v. American Emigrant Company, the Supreme Court of the United States was asked to decide whether a state could tax the property of a foreign corporation. The American Emigrant Company was a foreign corporation that owned a large amount of land in the state of Alabama. The state of Alabama had passed a law that imposed a tax on the property of foreign corporations. The American Emigrant Company argued that the law was unconstitutional because it violated the due process clause of the Fourteenth Amendment. The Supreme Court held that the law was constitutional and that the state of Alabama had the right to tax the property of foreign corporations. The Court reasoned that the due process clause did not prohibit the state from taxing the property of foreign corporations. The Court also noted that the tax was not discriminatory and that it was applied equally to all foreign corporations. The Court concluded that the law was constitutional and that the state of Alabama had the right to tax the property of foreign corporations. This decision established the principle that states have the right to tax the property of foreign corporations.

In County of Calhoun et al. v. American Emigrant Company, the Supreme Court was asked to decide whether a state could tax property owned by non-residents in its jurisdiction. The majority held that states do not have this power and that such taxation would be unconstitutional as it violates the Commerce Clause of the Constitution which grants Congress exclusive authority over interstate commerce. Justice Field dissented from this opinion, arguing that while Congress has been given exclusive authority over interstate commerce, it does not follow logically or legally that states are prohibited from taxing property within their borders belonging to non-residents who are engaged in business there. He argued further that if states were unable to tax such property then they would be deprived of an important source of revenue needed for public works projects and other government services necessary for citizens' welfare and safety; thus making them dependent on federal funds instead which is contrary to our system's design where each level of government should remain independent yet coordinate with one another when necessary.