Marathon Oil Stored at Texas Terminal Is Taxable, Court Told

Marathon Petroleum Co.‘s crude oil “is not merely passing through Texas” when it’s stored in a Corpus Christi export terminal on its way to markets abroad, meaning it’s subject to property tax, a county appraisal district told a state appeals court.

Marathon has maintained hundreds of thousands of barrels of oil constantly at the South Texas Gateway Terminal since it opened in 2020, the San Patricio County Appraisal District told the Texas Court of Appeals, Thirteenth Judicial District. “Oil in tank farms has a constant presence that subjects it to situs in the county that supports taxation,” the district said ...