League v. Atchison was a United States Supreme Court case that dealt with the issue of whether a state could tax a railroad company for the privilege of operating within its borders. The case arose when the Atchison and Pacific Railroad Company, a Kansas corporation, refused to pay a tax imposed by the state of Kansas. The company argued that the tax was unconstitutional because it violated the Commerce Clause of the United States Constitution. The Supreme Court ultimately held that the tax was constitutional, ruling that the state had the power to impose taxes on businesses operating within its borders. The Court reasoned that the tax was not a burden on interstate commerce, as it was imposed on all businesses operating within the state, regardless of whether they were engaged in interstate commerce. The Court also noted that the tax was not discriminatory, as it was imposed on all businesses operating within the state. The Court's decision established the principle that states have the power to impose taxes on businesses operating within their borders, provided that the taxes are not discriminatory and do not unduly burden interstate commerce.

In League v. Atchison, the Supreme Court was asked to decide whether a state could tax property owned by an Indian tribe located within its borders. The majority of the court held that it could not, as such taxation would be in violation of federal law and treaties between the United States and various tribes. However, Justice Field dissented from this opinion on two grounds: firstly, he argued that there was no clear evidence that Congress had intended to preempt states’ power to tax tribal lands; secondly, he argued that even if Congress had done so implicitly through treaty-making powers or otherwise, such preemption would be unconstitutional because it violated both state sovereignty and individual rights under the Fifth Amendment's Takings Clause. Ultimately then, Justice Field concluded that states should retain their right to impose taxes on tribal lands unless explicitly prohibited by Congress or other applicable laws.