In the case of Standard Pressed Steel Co. v. Department of Revenue of Washington, the Supreme Court ruled on whether a state could tax an out-of-state corporation for its in-state activities. The court held that a state can impose a business and occupation tax on an out-of-state company if it has sufficient connections with the taxing state to justify such taxation under both Due Process and Commerce Clauses. Standard Pressed Steel Company (SPS), based in Pennsylvania, had one employee working from his home office in Washington State who was responsible for maintaining customer relations with Boeing, SPS's primary client located there. The State of Washington imposed its Business & Occupation Tax on SPS’s gross receipts derived from sales to Boeing. The U.S Supreme Court upheld this imposition by concluding that despite having only one representative within the jurisdiction, SPS had established substantial nexus due to continuous business activity which benefited significantly from access to Washington market.

In the dissenting opinion for Standard Pressed Steel Co. v. Department of Revenue of Washington, Justice Brennan argued that the majority's decision to uphold Washington State's tax on out-of-state businesses was inconsistent with previous rulings by the Court and violated constitutional principles regarding interstate commerce. He contended that a state cannot impose a tax on an activity unless it has substantial nexus with that activity, which he believed wasn't present in this case as Standard Pressed Steel had no physical presence in Washington State beyond its sales representative who worked from home and did not stock inventory or make deliveries. Justice Brennan also expressed concern about potential double taxation if other states followed suit and imposed similar taxes on out-of-state corporations based solely upon their economic presence within their borders.