The case centered around a Louisiana state tax of 2% on goods sold within the state, as well as a 2% tax on goods purchased outside Louisiana but used within the state. Halliburton, an oil well cementing company, challenged the state's taxation of materials it purchased out-of-state and used in its operations in Louisiana.
The Supreme Court ultimately ruled in favor of Halliburton, finding that Louisiana's use tax discriminated against interstate commerce and violated the dormant Commerce Clause of the U.S. Constitution. The Court determined that the tax created an unfair burden on Halliburton by taxing its out-of-state purchases, while in-state purchases were exempt from the use tax. This decision helped establish important limits on a state's ability to tax interstate economic activity in a way that unduly favors in-state businesses over their out-of-state competitors.