Salt Lake City v. Hollister, Collector was a United States Supreme Court case that dealt with the taxation of municipal bonds. The case was brought by Salt Lake City, Utah, which had issued bonds to finance the construction of a waterworks system. The bonds were sold to the public, and the proceeds were used to pay for the construction. The city then sought to have the bonds exempted from taxation by the federal government. The Supreme Court held that the bonds were not exempt from taxation, as the federal government had the power to tax the bonds under the Constitution. The Court reasoned that the bonds were issued by the city for the purpose of raising money, and thus were taxable under the Constitution. The Court also held that the city had no authority to exempt the bonds from taxation, as the power to tax was vested solely in the federal government. The Court's decision was significant, as it established the principle that the federal government has the power to tax municipal bonds. This decision has been cited in numerous subsequent cases, and has been used to support the federal government's power to tax other types of bonds.

In the case of Salt Lake City v. Hollister, Collector, the Supreme Court was asked to decide whether a tax imposed by Congress on distilled spirits manufactured in Utah Territory was constitutional. The majority opinion held that it was not and struck down the tax as unconstitutional. Justice Field dissented from this decision and argued that Congress had authority under Article I, Section 8 of the Constitution to impose taxes within territories belonging to or under its jurisdiction. He further argued that since Utah Territory belonged exclusively to Congress at this time, it could lawfully impose taxes upon any property located there without violating any Constitutional provisions regarding state taxation powers. Furthermore, he noted that even if such a power did exist for states alone then nothing in Article IV would prevent Congress from exercising similar taxing powers over territories which were not yet admitted into the Union as states with full rights and privileges granted therein. In conclusion Justice Field maintained his belief that Congressional taxation power extended beyond just those areas already incorporated into states but also included all other places subject to its exclusive control including Utah Territory at issue here today