The Supreme Court ruled that the states could levy nondiscriminatory sales taxes on goods from other states.

The U.S. Constitution prohibits states from taxing imports, and it authorizes Congress to regulate interstate commerce. In Brown v. Maryland[case]Brown v. Maryland[Brown v. Maryland] (1827), the Supreme Court interpreted these two provisions to mean that the states could not tax an imported commodity while it was in its original packaging. In Woodruff v. Parham, by an 8-1 vote, the Court held that this limitation did not apply to goods coming from other states. Recognizing that a state might use its taxing power to interfere with interstate commerce, the Court emphasized that states could not enact discriminatory taxes to insulate their own citizens from competition. In Welton v. Missouri[case]Welton v. Missouri[Welton v. Missouri] (1876), therefore, the Court struck down a license tax imposed only on sellers of products manufactured outside the state.State taxation;Woodruff v. Parham[Woodruff v. Parham]

Brown v. Maryland

Commerce, regulation of

State taxation