1) Maryland imposed a tax on the Baltimore branch of the Second Bank of America, which was chartered by Congress. The bank refused to pay. 2) The Supreme Court ruled the Maryland tax unconstitutional, establishing that the federal government has implied constitutional powers beyond those explicitly enumerated. 3) The McCulloch v. Maryland decision strengthened federal supremacy over the states and limited state power to tax federal institutions, setting an important precedent for the balance of power between federal and state governments.