First Agricultural National Bank of Berkshire County v. State Tax Commission

The principal issue raised by this case concerns the extent to which States may tax a national bank. The *340Supreme Judicial Court for the Commonwealth of Massachusetts held that appellant, First Agricultural National Bank of Berkshire County, was subject to Massachusetts’ recently enacted sales and use taxes1 on purchases for its own use of tangible personal property. For reasons to be stated we believe this decision was erroneous, and we reverse.

As long ago as 1819, in the historic case of M'Culloch v. Maryland, 4 Wheat. 316, this Court declared unconstitutional a state tax on the bank of the…