In the 1939 case of Nashville, Chattanooga & St. Louis Railway v. Browning et al., the U.S Supreme Court dealt with a dispute over taxation between a railway company and the State Board of Equalization of Tennessee. The railway argued that its property was being assessed at a higher value than other types of real estate in violation of federal law which requires equal treatment for all forms of property when determining tax rates. The court ruled in favor of the railway company, finding that it had been subjected to discriminatory taxation by having its properties valued more highly than those owned by individuals or corporations not engaged in transportation businesses within Tennessee's borders. This decision reinforced principles against discriminatory state taxation practices under federal law.

In the dissenting opinion for Nashville, Chattanooga & St. Louis Railway v. Browning et al., Justice Black argued that the majority's decision to strike down Tennessee's tax assessment on railroads was an overreach of judicial power and a violation of states' rights. He contended that it is not within the Court’s jurisdiction to determine whether or not a state has assessed taxes fairly, as this responsibility lies with state legislatures and their constituents who have elected them into office. Furthermore, he expressed concern about potential negative impacts on states’ abilities to raise revenue through taxation if they are constantly under threat of federal court intervention based on subjective interpretations of what constitutes fair taxation practices.