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INCOME TAXES
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The Company accounts for income taxes using ASC 740, “Income Taxes,” which is an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized differently in the financial statements and the tax returns. The provision for income taxes consists of the following at December 31:
($ in thousands)202420232022
Total provision (benefit):$976 $2,323 $7,393 
Federal:
Current26 1,371 3,330 
Deferred633 353 1,718 
659 1,724 5,048 
State:
Current260 584 2,044 
Deferred57 15 301 
317 599 2,345 
Total$976 $2,323 $7,393 

In 2024, the Company’s effective tax rate varied from the statutory federal rate primarily due to permanent differences related to Section 162(m) limitations, state taxes and excess stock compensation expense. The Section 162(m) compensation deduction limitations occurred as a result of changes in tax law arising from the 2017 Tax Cuts and Jobs Act, which first impacted the Company in 2020. A reconciliation of the provision for income taxes, with the amount computed by applying the statutory Federal income tax rate of 21% in 2024, 2023 and 2022, is as follows for the years ended December 31: 
($ in thousands)202420232022
Income tax at statutory rate$770 $1,195 $4,869 
State income taxes, net of Federal benefit256 578 1,851 
Excess stock compensation expense (benefit)6 (501)(147)
Non-deductible compensation181 1,302 1,008 
Oil and mineral depletion(129)(130)(147)
Refunds(1)— — 
Permanent differences11 9 10 
Other(118)(130)(51)
Provision for income taxes$976 $2,323 $7,393 
Effective tax rate26.6 %41.6 %31.9 %
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities were as follows at December 31:
($ in thousands)20242023
Deferred income tax assets:
Accrued expenses$319 $293 
Deferred revenues644 563 
Capitalization of costs1,157 1,218 
Pension adjustment1,801 1,921 
Stock grant expense2,164 1,048 
State deferred taxes248 355 
Book deferred gains2,127 2,127 
Joint venture allocations524 552 
Provision for additional capitalized costs699 699 
Interest rate swap1,444 1,444 
Other74 81 
Total deferred income tax assets$11,201 $10,301 
Deferred income tax liabilities:
Deferred gains$1,753 $1,753 
Depreciation5,447 4,766 
Cost of sales allocations872 872 
Joint venture allocations7,729 7,272 
Capitalized stock compensation1,431 1,202 
Straight line rent231 296 
Prepaid expenses679 369 
State deferred taxes— 96 
Interest rate swap1,444 1,444 
Other674 500 
Total deferred income tax liabilities$20,260 $18,570 
Net deferred income tax (liability)$(9,059)$(8,269)
Allowance for deferred tax assets— — 
Net deferred taxes$(9,059)$(8,269)
Due to the nature of the Company's deferred tax assets, the Company believes they will be used through operations in future years and a valuation allowance is not necessary.
The Company made $315,000 in estimated tax payments in 2024 and $2,564,000 in 2023. The Company received tax refunds of $1,000 and $0 in 2024 and 2023, respectively.
The Company evaluates its tax positions for all income tax items based on their technical merits to determine whether each position satisfies the “more likely than not to be sustained upon examination” test. The tax benefits are then measured as the largest amount of benefit, determined on a cumulative basis, that is “more likely than not” to be realized upon ultimate settlement. As a result of this evaluation, the Company determined there were no uncertain tax positions that required recognition and measurement for the years ended December 31, 2024 and 2023 within the scope of ASC 740, "Income Taxes." Tax years from 2021 to 2023 and 2020 to 2023 remain available for examination by the Federal and California State taxing authorities, respectively.