In the 1988 case of California State Board of Equalization v. Sierra Summit, Inc., the U.S. Supreme Court ruled in favor of Sierra Summit, a ski resort operator. The issue at hand was whether or not California's method for calculating property tax assessments violated federal law by discriminating against interstate commerce. The state assessed property taxes based on its current value rather than its purchase price, which resulted in newer properties being taxed more heavily than older ones due to inflation and rising real estate values over time. Sierra Summit argued that this system unfairly penalized them because they had recently purchased their property while competitors who owned older resorts paid less in taxes. They claimed this constituted discrimination against interstate commerce as it created an unfair advantage for local businesses over out-of-state companies looking to invest in California. The court agreed with Sierra Summit’s argument and held that the state's taxation scheme did indeed violate the Commerce Clause of the Constitution by treating intrastate and interstate businesses differently without sufficient justification.

In the dissenting opinion for California State Board of Equalization v. Sierra Summit, Inc., Justice Blackmun argued that the majority's decision was a departure from established precedent regarding interstate commerce and taxation. He contended that the Court had previously ruled in favor of upholding state taxes as long as they did not discriminate against or unduly burden interstate commerce, which he believed to be true in this case. The tax imposed by California on out-of-state liquor wholesalers was equivalent to those levied on their in-state counterparts; therefore, it should have been upheld under previous rulings such as Complete Auto Transit v. Brady (1977). Furthermore, Justice Blackmun disagreed with the majority's interpretation of 21st Amendment implications and stated that there is no clear evidence suggesting Congress intended to exempt alcohol from normal principles governing state taxation power over interstate commerce when it repealed prohibition.