INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2018

Income tax benefit for the years ended December 31, 2018 and 2017 consisted of the following (in thousands):

A reconciliation of the federal statutory tax rate to the Partnership’s effective tax rate is as follows:

	Years Ended December 31,
	2018			2017
Computed tax provision (benefit) at the applicable statutory tax rate		21.0	%		35.0	%
State and local taxes net of federal income tax benefit		(1.1	)%		(1.1	)%
Tax exempt (income) loss		(1.5	)%		(1.2	)%
Change in current year valuation allowance		(18.3	)%		(24.1	)%
Partnership earnings not subject to tax		2.0	%		6.3	%
Changes in tax due to Tax Act and ASC 606 retroactive impact		0.5	%		(7.7	)%
Changes in valuation allowance due to Tax Act		—	%		15.1	%
Permanent differences		(0.1	)%		(10.9	)%
Other		—	%		—	%
Effective tax rate		2.5	%		11.4	%

Significant components of the deferred tax assets and liabilities were as follows (in thousands):

	December 31,
	2018			2017
Deferred tax assets:
Prepaid expenses	$	5,102		$	5,538
State net operating loss		24,162			19,305
Federal net operating loss		84,017			74,109
Foreign net operating loss		2,106			2,306
Other		55			55
Valuation allowance		(89,066	)		(73,759	)
Total deferred tax assets		26,376			27,554
Deferred tax liabilities:
Property, plant and equipment		2,119			4,104
Deferred revenue related to future revenues and accounts receivable		25,021			27,175
Deferred revenue related to cemetery property		5,825			5,829
Total deferred tax liabilities		32,965			37,108
Net deferred tax liabilities	$	6,589		$	9,554

Net deferred tax assets and liabilities were classified on the consolidated balance sheets as follows (in thousands):

	December 31,
	2018		2017
Deferred tax assets	$	86	$	84
Noncurrent assets		86		84
Deferred tax assets		26,290		27,470
Deferred tax liabilities		32,965		37,108
Noncurrent liabilities		6,675		9,638
Net deferred tax liabilities	$	6,589	$	9,554