The U.S. Supreme Court case Fair Assessment in Real Estate Association, Inc., et al. v. McNary et al., 1981, revolved around the issue of whether federal courts have jurisdiction over civil rights claims that challenge state tax systems under section 1983 of the Civil Rights Act. The plaintiffs were a group of taxpayers who alleged that their properties had been assessed at a higher percentage of market value than other properties in St Louis County, Missouri and sought damages for back taxes paid under protest as well as an injunction against future discriminatory assessments. However, the court ruled unanimously (9-0) against them stating that principles of comity and federalism prevent federal courts from interfering with state taxation procedures until after those procedures have been exhausted and any payments refunded by the state system itself.

In the dissenting opinion for FAIR ASSESSMENT IN REAL ESTATE ASSOCIATION, INC., et al. v. MCNARY et al., Justice Blackmun argued that the majority's decision to bar taxpayers from seeking damages in federal court for alleged unconstitutional state tax administration was overly restrictive and inconsistent with previous rulings of the Court. He contended that this ruling would effectively deny many taxpayers a meaningful opportunity to challenge their assessments, as they may not have sufficient resources or expertise to pursue complex litigation in state courts. Furthermore, he expressed concern that this decision could undermine public confidence in the fairness and integrity of state taxation systems by making it more difficult for aggrieved taxpayers to obtain redress for constitutional violations.