In the 1949 case of New Jersey Realty Title Insurance Co. v. Division of Tax Appeals of New Jersey et al., the U.S Supreme Court ruled in favor of the state, upholding its right to tax a title insurance company based on premiums received from policies insuring property titles within its jurisdiction, regardless if those properties were located outside the state's boundaries or not. The court held that such taxation did not violate due process rights under Fourteenth Amendment as it was neither arbitrary nor discriminatory and had a rational basis because business operations were conducted within New Jersey itself. This decision affirmed states' authority to levy taxes on businesses operating within their borders even when some aspects of their operations extended beyond these borders.

In the dissenting opinion for New Jersey Realty Title Insurance Co. v. Division of Tax Appeals of New Jersey et al., Justice Jackson argued that the majority's decision was inconsistent with previous rulings and principles regarding taxation. He contended that the Court had previously held that a state could not tax an out-of-state corporation unless it had a substantial nexus to the state, which he believed did not exist in this case as all significant business activities were conducted outside of New Jersey. Furthermore, he disagreed with how gross receipts from premiums were calculated for tax purposes, arguing they should be apportioned based on where services are performed rather than where contracts are executed or delivered. Lastly, Justice Jackson expressed concern about potential double taxation if other states followed suit and taxed corporations based on contract execution location.