In the case of Carolina Glass Company v. State of South Carolina, 1915, the Supreme Court ruled in favor of the state. The dispute arose when South Carolina imposed a tax on corporations based on their capital stock value and surplus funds. The plaintiff, Carolina Glass Company argued that this was unconstitutional as it violated both due process and equal protection clauses under the Fourteenth Amendment because it taxed property outside its jurisdiction (the company had properties in other states). However, the court held that such taxation did not violate any constitutional rights since it was levied only upon those companies doing business within its borders and thus subject to its laws. Furthermore, they clarified that while a state cannot directly tax out-of-state property or operations belonging to domestic corporations operating interstate businesses; however indirect burden through franchise taxes is permissible if apportioned fairly among all similarly situated entities.

The dissenting opinion in the Carolina Glass Company v. State of South Carolina case argued that the majority's decision was inconsistent with previous rulings and principles of justice. The dissenting justices believed that the state had no right to tax a corporation for property located outside its jurisdiction, as it violated fundamental principles of fairness and equity. They contended that such taxation amounted to double taxation since corporations could be taxed by multiple states for the same property, which they viewed as unjustifiable under any circumstances. Furthermore, they disagreed with the majority's interpretation of "property," arguing instead that shares represent an interest in a company rather than tangible assets subject to taxation by individual states where shareholders reside.