In the case of United States v. Knott, State Treasurer, et al., 1935, the U.S Supreme Court ruled in favor of the United States government over a dispute involving federal land rights and taxation by state governments. The issue arose when Florida attempted to tax lands owned by the Federal Government that were being used for naval purposes. The court held that under Article I Section 8 Clause 17 of the Constitution (the Enclave Clause), states cannot impose taxes on federal property without consent from Congress. This decision reinforced principles established in earlier cases such as McCulloch v Maryland which affirmed federal supremacy over states regarding taxation issues and highlighted constitutional limits on state authority to interfere with federally-owned properties or operations within their borders.

In the dissenting opinion for United States v. Knott, Justice Stone argued that the federal government did not have a right to sue a state without its consent under the Eleventh Amendment. He contended that this case was essentially an attempt by the federal government to recover funds from Florida's treasury, which he believed was unconstitutional. Furthermore, Justice Stone disagreed with majority’s interpretation of tax laws and their application in this case. He stated that there were no provisions in these laws allowing such suits against states or their officials and thus it should be dismissed on grounds of sovereign immunity granted by Eleventh Amendment.