NuStar Challenge to Income Tax Rule Rejected by Texas Justices

Sunoco LP subsidiary NuStar Energy LP failed to convince the Texas Supreme Court on Friday to strike down a state regulation on how to determine which of its crude oil sales are subject to franchise tax.

The company asked the court to overturn a 2023 appeals court ruling that the rule adopted the “only reasonable construction” of the state’s tax code by saying the place of delivery determines apportionment, even when the buyer is located out of state.

The justices sided with the state comptroller. Under the law’s “unmistakably clear language, goods are delivered in the statutory sense where the ...