The First Unitarian Church of Los Angeles v. County of Los Angeles case in 1957 revolved around the issue of property tax exemption for religious organizations. The county had denied a tax exemption to the church because it was used, not only for worship but also as a forum for public discussions on controversial topics such as racial equality and world peace. The Supreme Court ruled in favor of the church, stating that taxing authorities cannot use their power to inhibit free speech or freedom of religion protected by the First Amendment. Therefore, they could not deny tax exemptions based on how churches chose to exercise these rights. This ruling reinforced that government bodies should remain neutral towards religion and its practice while upholding constitutional freedoms.

In the dissenting opinion for the First Unitarian Church of Los Angeles v. County of Los Angeles case, Justice Frankfurter argued that tax exemption is a form of subsidy that can be granted or withheld without infringing upon religious freedom. He maintained that there was no constitutional requirement to subsidize churches and other religious institutions through tax exemptions, as it does not interfere with their free exercise rights. The justice also pointed out that such subsidies could potentially lead to government favoritism towards certain religions over others, which would violate the Establishment Clause in the Constitution's First Amendment. Therefore, he disagreed with majority’s ruling stating it was unconstitutional for California to deny property tax exemptions to non-profit organizations refusing to sign loyalty oaths disavowing violent overthrow of government.