It was 1819. The U.S. had a federal bank, the Bank of the United States. The State of Maryland voted to tax all bank business not done with state banks. The State of Maryland also sought to tax the federal bank. Andrew McCulloch refused to pay the tax. The State of Maryland sued, and the Supreme Court accepted the case.
The court said that the federal government did indeed have the right and power to set up a federal bank. It also said that the state did not have the power to tax the federal government.
I think that it gives more power to the state because it is letting them collect tax from the federal government instead of the federal government collecting tax from states.