In the case of Millsaps College v. City of Jackson (1927), the U.S Supreme Court was tasked with determining whether a municipal ordinance that taxed private property used for educational purposes violated constitutional provisions. The college, located in Mississippi, argued that it should be exempt from taxation as per state law which protected properties used solely for educational or religious purposes from such levies. However, the city contended that this exemption did not apply to them because they were operating under a special charter granted by the state legislature allowing them to tax all real estate within their limits. The court ruled in favor of Millsaps College stating that while municipalities have broad powers over local affairs including taxation, these powers are subject to limitations imposed by both federal and state constitutions. Therefore, even though Jackson had been given authority through its special charter to impose taxes on all real estate within its jurisdictional boundaries; this power could not infringe upon constitutional protections afforded to certain types of property like those being utilized exclusively for education or religion.

The dissenting opinion in the Millsaps College v. City of Jackson case argued that the city's tax assessment on the college was unconstitutional, as it violated a state law exempting educational institutions from taxation. The justice disagreed with the majority's interpretation of this exemption as only applying to property used directly for instructional purposes, arguing instead that all properties owned by an educational institution should be considered part of its operations and thus exempt from taxation. They contended that such a narrow interpretation undermined the purpose and spirit of laws designed to support education by providing financial relief through tax exemptions. Furthermore, they expressed concern about potential negative impacts on other similar institutions if this precedent were allowed to stand.