During the past decade gas and electricity have become common subjects of taxation by the states, and a not inconsiderable volume of revenue is now being raised from levies upon their production, sale, transportation and consumption. The subjection to a general property tax of the facilities for producing and dealing in these commodities creates no problem of special interest for the present discussion. The same considerations are involved as in the similar application of such a tax to other types of property, and it has long been recognized that the mere fact of use in the conduct of interstate business gives no valid claim to immunity from state taxation. The more specialized types of taxes, however, have given rise to some interesting problems in relation to interstate commerce. The most common of these have been the production taxes and the sales taxes.
Robert L. Howard,
Gas and Electricity in Interstate Commerce - Part III - State Taxation,
50 Bulletin Law Series.
Available at: http://scholarship.law.missouri.edu/ls/vol50/iss1/4