In the case of Cumberland Coal Co. v. Board of Revision of Tax Assessments in Greene County, Pennsylvania (1931), the U.S Supreme Court ruled that a state could not tax coal while it was still underground as real estate because such taxation would interfere with interstate commerce. The court held that once coal is mined and prepared for shipment, it becomes an article of commerce and therefore falls under the jurisdiction of Congress's power to regulate interstate trade. This decision effectively prevented states from imposing taxes on natural resources before they are extracted or sold commercially.

In the dissenting opinion for Cumberland Coal Co. v. Board of Revision of Tax Assessments in Greene County, Pennsylvania, Justice Stone argued that the majority's decision was inconsistent with previous rulings and principles regarding taxation powers. He contended that a state has the right to tax property within its borders and should be able to do so without interference from federal courts unless there is clear violation or abuse of constitutional rights. In this case, he believed no such violation occurred as Pennsylvania law allowed for fair market value assessment which included considering mineral reserves beneath land surface when determining taxable value. The fact that coal companies were taxed based on potential profits from unmined coal did not constitute discrimination against interstate commerce nor deprive them of due process or equal protection under Fourteenth Amendment according to him.