In the case of Kosydar, Tax Commissioner of Ohio v. National Cash Register Co., 1973, the U.S. Supreme Court ruled in favor of National Cash Register (NCR). The issue at hand was whether NCR's use and storage of its business records within Ohio constituted a taxable presence or "nexus" in the state under its Commercial Activity Tax law. The court held that such activity did not create sufficient nexus for taxation purposes because it lacked substantial connection to economic activities within the state. This decision set an important precedent regarding what constitutes a taxable presence for businesses operating across multiple states.

In the dissenting opinion for Kosydar v. National Cash Register Co., Justice Douglas argued that Ohio's franchise tax, as applied to National Cash Register (NCR), was unconstitutional because it violated the Commerce Clause of the U.S. Constitution. He contended that NCR's interstate activities were being unfairly taxed by Ohio, which could potentially lead to multiple taxation from different states and create a burden on interstate commerce. The majority upheld the tax based on NCR’s “domestic” status in Ohio and its total value worldwide; however, Douglas disagreed with this interpretation stating it went beyond what is constitutionally permissible under Complete Auto Transit Inc v Brady precedent where a state can only tax an entity if there is substantial nexus between taxpayer and state, fair apportionment, no discrimination against interstate commerce and relatedness to services provided by State.