Oil Seller Asks Texas High Court to Topple Apportionment Rule

A company that transports and stores crude oil wants the Texas Supreme Court to review a comptroller rule interpreting the state’s franchise tax law.

A state appeals court ruled in December that the comptroller’s rule on which business activities to apportion to the state adopted the “only reasonable construction” of the tax code by saying the place of delivery controls for apportionment purposes even when the buyer is located out of state.

NuStar Energy LP told the high court in a petition filed April 5 that the comptroller is trying to evade the legislature’s intent to apportion receipts from the ...