In the case of Stewart, Treasurer Wyandotte County, Kansas v. City of Kansas City, Kansas (1915), the Supreme Court ruled on a dispute over taxation between local and county governments. The city had issued bonds to fund public improvements but argued that these should not be subject to county taxes as they were used for public benefit. However, the treasurer of Wyandotte County insisted that all property within its jurisdiction was taxable unless specifically exempted by law. The court sided with the county treasurer's interpretation and held that municipal bonds are indeed subject to taxation by counties in which cities are located unless explicitly exempted by state legislation.

In the dissenting opinion for Stewart v. City of Kansas City, it was argued that the majority's decision to uphold a tax assessment on certain lands owned by Wyandotte County in Kansas contradicted previous court rulings and violated constitutional principles. The dissenting justices contended that these lands were public property used for governmental purposes and should therefore be exempt from taxation under state law. They further maintained that this exemption applied regardless of whether or not the county derived income from these properties, as long as they were being used for public benefit. By imposing taxes on such properties, they believed the city was infringing upon the sovereignty of the state and its subdivisions, which could set a dangerous precedent undermining local government autonomy.