In the case of General Motors Corporation v. Roger W. Tracy, Tax Commissioner of Ohio in 1996, the Supreme Court ruled that Ohio's taxation system did not violate the Commerce Clause by discriminating against interstate commerce. The issue arose when General Motors (GM) purchased natural gas directly from producers and paid a tax to Ohio for storing it there before use or resale elsewhere. GM argued this was discriminatory as local companies buying from in-state suppliers were exempted from such taxes under state law. The court disagreed with GM’s argument stating that because both types of businesses - those purchasing gas locally and those like GM purchasing out-of-state - were subject to different regulatory regimes within the state, they could be treated differently for tax purposes without violating constitutional principles on interstate trade discrimination.

The dissenting opinion in the General Motors Corporation v. Roger W. Tracy case argued that Ohio's tax scheme, which taxed natural gas purchased directly from producers at a higher rate than gas bought from local distribution companies, did not violate the Commerce Clause of the U.S Constitution. The justices contended that there was no discrimination against interstate commerce as all natural gas sold within Ohio was subject to taxation regardless of its source or method of delivery. They also pointed out that any differential treatment between direct-purchase consumers and those who buy through local distributors could be justified by differences in regulatory burdens and responsibilities borne by these entities under state law. Furthermore, they disagreed with the majority's conclusion about potential market distortions caused by this tax scheme, arguing instead that it reflected legitimate policy choices made by state lawmakers rather than an attempt to protect or favor local businesses over their out-of-state competitors.