(18)	INCOME TAXES

The operations of a partnership are generally not subject to income taxes, except as discussed below, because its income is taxed directly to its partners. Effective January 1, 2007, the Partnership became subject to the Texas margin tax as described below. Woodlawn, a subsidiary of the Partnership, is subject to income taxes due to its corporate structure. A current federal income tax benefit of $11, $0 and $1,061, related to the operation of the subsidiary, were recorded for the years ended December 31, 2011, 2010 and 2009, respectively. In connection with the Woodlawn acquisition, the Partnership also established deferred income taxes of $8,964 associated with book and tax basis differences of the acquired assets and liabilities. The basis differences are primarily related to property, plant and equipment.

The activities of the Cross assets prior to the acquisition by the Partnership were subject to federal and state income taxes. Accordingly, income taxes have been included in the Cross assets operating results from January 1, 2009 through November 24, 2009. Related payables/receivables are included in Due to affiliates and Other current assets, respectively, on the consolidated balance sheet.

A deferred tax benefit of $139 and $415 and a deferred tax expense of $294 related to the Woodlawn basis differences and the basis differences of the Cross assets was recorded for the years ended December 31, 2011, 2010 and 2009, respectively. A deferred tax liability of $7,657 and $8,213 related to these basis differences existed at December 31, 2011 and 2010, respectively.

Beginning in 2007, the Texas margin tax restructured the state business tax by replacing the taxable capital and earned surplus components of the existing franchise tax with a new “taxable margin” component. Since the tax base on the Texas margin tax is derived from an income-based measure, the margin tax is construed as an income tax and, therefore, the recognition of deferred taxes applies to the margin tax. The impact on deferred taxes as a result of this provision is immaterial. State income taxes attributable to the Texas margin tax of $713, $932 and $422 were recorded in income tax expense for the years ended December 31, 2011, 2010 and 2009, respectively.

An income tax receivable of $760 is included in other current assets at December 31, 2010 and 2009. An income tax liability of $893, $811 and $454 existed at December 31, 2011, 2010 and 2009, respectively.

The components of income tax expense (benefit) from operations recorded for the years ended December 31, 2011, 2010 and 2009 are as follows:

	2011			2010			2009
Current:
Federal	$	11		$	-		$	(311	)
State		713			932			609
		724			932			298
Deferred:
Federal		(139	)		(415	)		294
	$	585		$	517		$	592