Texas Justices Cast Doubt on NuStar’s Interpretation of Tax Rule

NuStar Energy LP appears to face an uphill battle in its challenge to a Texas franchise tax bill after several justices of the state’s high court questioned its statutory interpretation at oral arguments Wednesday.

The crude oil seller wants the Texas Supreme Court to overturn a 2023 ruling that upheld a rule on how to apportion business activities to the state for tax purposes.

The state tax code says gross receipts from business done in the state include sales of property “delivered or shipped to a buyer in the state.” The state comptroller interpreted that statute to source receipts to ...