288 U.S. 249 (1933)
Nashville C. & St.
Does the state of Tennessee's imposition of a storage tax on gasoline stored within the state for subsequent interstate commerce violate the Commerce Clause of the United States Constitution?
Under the Commerce Clause of the United States Constitution, state-imposed taxes that substantially interfere with interstate commerce are invalid. The Constitution limits states' ability to impose taxes on goods involved in interstate activities that could lead to double taxation or an undue burden on interstate commerce.
The United States Supreme Court held that Tennessee's imposition of the storage tax was not in violation of the Commerce Clause and did not constitute an unconstitutional burden on interstate commerce.
The case is significant because it provides legal clarity on the extent of state powers in the context of imposing taxes on goods that may be destined for interstate commerce. It highlights the delicate balance that must be maintained between state revenues and national unity, as well as the role of the Supreme Court in safeguarding the economic federal structure. For law students, this case underscores the importance of understanding federalism and the Commerce Clause as crucial components in American constitutional law.