Sunoco Questioned by Leery New York Panel in Tax Refund Case

A Sunoco LP subsidiary doesn’t seem to have convinced a New York appellate panel at oral arguments Monday to reduce the amount of income from its oil transfers that the state can tax.

At issue are “buy/sell transactions” where Sunoco would buy inventory from another oil company to fulfill a customer order because the other company’s oil was closer to the customer, thereby reducing transportation costs. In exchange, Sunoco would sell the same amount of oil to the other company in a different location.

A divided New York Tax Appeals Tribunal panel ruled in 2024 that these transactions were exchanges ...