In the case of Jaybird Mining Company v. Weir, County Treasurer in 1925, the Supreme Court examined whether a state tax on mining claims was constitutional. The Jaybird Mining Company had purchased unpatented mining claims from individuals who discovered valuable mineral deposits on federal land and argued that these purchases were not taxable by states as they were federally owned properties. However, the court ruled against this argument stating that while it is true that ultimate title to public lands rests with the Federal Government until patented or otherwise disposed of under its authority, those who have located valuable minerals upon such lands and complied with regulations prescribed by Congress acquire rights protected by law which are property in themselves and form a basis for taxation by States where situated.

In the dissenting opinion for Jaybird Mining Company v. Weir, it was argued that the majority's decision to uphold a tax assessment on mining property in Arizona contradicted previous rulings of the court. The dissenting justices believed that under established principles of law, a state cannot impose taxes on property located outside its jurisdiction and therefore disagreed with taxing out-of-state assets based solely on their ownership by an in-state corporation. They contended that this taxation violated due process rights as well as interstate commerce protections provided by the Constitution. Furthermore, they expressed concern about potential negative implications for businesses operating across state lines if such taxation were allowed to stand.