In the 1930 case of Interstate Transit, Incorporated v. Lindsey, County Court Clerk, the United States Supreme Court ruled on a dispute involving interstate commerce and state taxation. The plaintiff was an interstate bus company that operated in multiple states including Tennessee. They challenged a tax imposed by Shelby County in Tennessee arguing it violated their rights under the Commerce Clause of the U.S Constitution which prohibits states from interfering with interstate commerce. The county had levied a privilege tax on all vehicles for hire operating within its jurisdiction without considering whether they were involved in intrastate or interstate business operations. The Supreme Court sided with Interstate Transit Inc., ruling that such taxes could not be applied to vehicles engaged primarily in interstate travel as this would constitute an undue burden on such commerce and thus violate federal law. This decision reinforced previous rulings emphasizing that only Congress has power to regulate trade between different states.

In the dissenting opinion for Interstate Transit, Inc. v. Lindsey, the justice argued that the majority's decision to uphold a Tennessee law requiring interstate buses to pay a privilege tax was inconsistent with previous Supreme Court rulings on similar issues. The justice contended that this law unfairly burdened interstate commerce and violated the Commerce Clause of the U.S Constitution by subjecting it to discriminatory taxation from individual states. He pointed out that while states have some power over local aspects of interstate commerce, they cannot use this power in ways that discriminate against or unduly burden such commerce without violating constitutional principles. Furthermore, he disagreed with the majority's view that there was no evidence showing an undue burden on interstate transit companies due to this tax; instead arguing there were clear indications of such burdens being imposed.