In Woods vs. Lawrence County, the Supreme Court ruled that a county in Alabama had no authority to levy taxes on private property without first obtaining approval from the state legislature. The case began when James Woods sued Lawrence County for levying taxes on his land without legislative authorization. The court held that counties do not have inherent powers and must obtain permission from their respective states before they can impose any kind of tax or assessment upon citizens' property. This ruling was significant because it established an important precedent regarding taxation and local government power throughout the United States; namely, that local governments cannot act independently of their respective states when it comes to taxation matters.

In Woods v. Lawrence County, the Supreme Court ruled in favor of the plaintiff and found that a county had no authority to levy taxes on property owned by an individual who was not a resident of that county. The dissenting opinion argued that counties should have broad powers when it comes to taxation as they are responsible for providing essential services such as roads, bridges, schools and other public works projects. Furthermore, allowing individuals from outside the county to own property within its borders without paying taxes would be unfair to those who do pay their fair share of taxes. The dissent also noted that if counties were unable to tax non-residents then they would be forced into financial hardship due to lack of revenue needed for these important services. Ultimately, this decision could lead states down a slippery slope where local governments become increasingly reliant on state funds instead of being able to generate their own income through taxation which is necessary for them operate effectively and efficiently serve their citizens' needs.