In the case of Gurley, DBA Gurley Oil Co. v. Rhoden, Chairman, Tax Commission of Mississippi (1974), the U.S Supreme Court addressed a dispute over state taxation on interstate commerce. The petitioner, Gurley Oil Company was an Alabama-based business that transported gasoline to its customers in Mississippi and argued that it should not be subjected to tax by both states for this activity under the Commerce Clause of the Constitution which prohibits undue burdens on interstate commerce. However, Mississippi imposed a sales tax on out-of-state businesses delivering goods within its borders and claimed that this did not violate federal law as it applied equally to all companies operating within their jurisdiction regardless of where they were based. The Supreme Court ruled in favor of Rhoden and upheld Mississippi's right to impose such taxes stating there was no discrimination against interstate commerce since local firms were also subject to these taxes when selling fuel inside state lines; thus maintaining fair competition between local and out-of-state businesses.

In the dissenting opinion for Gurley v. Rhoden, it was argued that Mississippi's tax on the privilege of severing oil and gas from land or water bottoms within its jurisdiction should not be considered a violation of due process or interstate commerce clause. The justice believed that this case did not involve multiple taxation since only one state imposed a tax on the same event - extraction of oil and gas in Mississippi. Furthermore, he disagreed with the majority's view that such taxes were discriminatory against out-of-state interests because they applied equally to all producers regardless of their location outside Mississippi. He also pointed out that there was no evidence showing these taxes had an adverse effect on interstate commerce as claimed by appellant Gurley Oil Co., nor any indication they were intended to protect local industry at expense of non-residents.