McCulloch v. Maryland · US History

What did the Supreme Court decide about Maryland's tax on the national bank?

  1. Maryland could tax the bank because banks are always state institutions
  2. Maryland could not tax the bank because states cannot interfere with federal operations
  3. Maryland could tax only the bank's employees, not the bank itself directly
  4. Maryland could tax the bank only during a declared wartime emergency
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Correct answer: Maryland could not tax the bank because states cannot interfere with federal operations

The Court held that Maryland could not tax the national bank. A state tax on a federal institution would allow states to interfere with or control federal constitutional powers.

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