The People of New York on the Relation of The Bank of Commerce vs. The Commissioners of Taxes for the City and County of New York was a case heard before the United States Supreme Court in 1862. At issue was whether or not state governments had authority to tax national banks, which were chartered by Congress under federal law. In this particular case, The Bank Of Commerce argued that it should be exempt from taxation because its charter granted it immunity from such taxes as part of its agreement with Congress when it became a national bank. However, the Commissioners Of Taxes For The City And County Of New York argued that they had authority to impose taxes on any property within their jurisdiction regardless if it belonged to a federally chartered institution or not. Ultimately, after much deliberation and consideration over both sides’ arguments, the court ruled in favor of The Bank Of Commerce stating that states do not have power to tax institutions created by Congress under federal law due to constitutional limitations imposed upon them by Article 1 Section 8 Clause 4 (the Necessary & Proper Clause).

In the case of The People of New York on the Relation of The Bank of Commerce vs. The Commissioners of Taxes for the City and County of New York, a dissenting opinion was presented by Justice Nelson. He argued that while it is true that taxes are necessary to support government operations, they should not be used as a means to raise revenue beyond what is needed for public purposes. In this particular case, he felt that the tax imposed upon banks was excessive and unjustified given its purpose. Furthermore, he believed that such an imposition would have a negative effect on banking institutions in general due to their inability to generate sufficient profits under such conditions. As such, Justice Nelson concluded his dissent with an assertion that any taxation must be reasonable and proportionate in order for it to remain valid under law.