The U.S. Supreme Court case Williams, Commissioner of Finance, et al. v. Standard Oil Company of Louisiana in 1927 revolved around the issue of taxation on interstate commerce and whether it violated the Commerce Clause of the Constitution. The State of Tennessee had imposed a tax on all gasoline stored within its borders that was later sold to other states or foreign countries - this included gas owned by Standard Oil Company (SOC). SOC argued that this tax was unconstitutional as it interfered with interstate commerce, which is under federal jurisdiction according to the Commerce Clause. However, after reviewing previous cases and legal precedents related to similar issues such as Coe v Errol and American Steel & Wire Co v Speed ,the court ruled against SOC stating that until goods have started moving in interstate commerce they are subject to local taxation even if intended for exportation at time when taxed.

In the dissenting opinion for Williams, Commissioner of Finance, et al. v. Standard Oil Company of Louisiana, Justice Oliver Wendell Holmes Jr., joined by Justices Louis Brandeis and Harlan Fiske Stone disagreed with the majority's ruling that a state tax on oil refined in Louisiana but sold out-of-state was unconstitutional under the Commerce Clause. The dissent argued that this interpretation overly restricted states' power to levy taxes within their jurisdiction and could potentially undermine their financial stability. They contended that as long as a product is physically present in a state at some point during its production or sale process, it should be subject to taxation by that state regardless of where it ends up being sold or used. This view emphasizes respect for states' rights and fiscal autonomy over an expansive reading of federal commerce powers.