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Income Taxes
 6 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Provision for income taxes$996 $2,037 $2,831 $3,578 

The operations of a partnership are generally not subject to income taxes, except for Texas margin tax, because its income is taxed directly to its partners. Current state income taxes attributable to the Texas margin tax relating to the operation of the Partnership of $80 and $80 were recorded in income tax expense for the three months ended June 30, 2023 and 2022, respectively. Current state income taxes attributable to the Texas margin tax relating to the operation of the Partnership of $200 and $256 were recorded in income tax expense for the six months ended June 30, 2023 and 2022, respectively. Deferred taxes applicable to the Texas margin tax relating to the operation of the Partnership are immaterial.

MTI, a wholly owned subsidiary of the Partnership, is subject to income taxes due to its corporate structure (the "Taxable Subsidiary"). Total income tax expense of $916 and $1,957, related to the operation of the Taxable Subsidiary, for the three months ended June 30, 2023 and 2022, resulted in an effective income tax rate ("ETR") of 26.60% and 21.58%, respectively. Total income tax expense of $2,631 and $3,322, related to the operation of the Taxable Subsidiary, for the six months ended June 30, 2023 and 2022, resulted in an ETR of 25.16% and 21.77%, respectively.

The increase in the ETR for the income taxes during the three and six months ended June 30, 2023 was primarily due to an increase in state income taxes as a result of full utilization of net operating losses in some states, compared to the same period in 2022. The decrease in the provision for income taxes for both the three and six months ended June 30, 2023, compared to the same period in 2022, was primarily due to a decrease in income before income taxes in the current period.

    A current federal income tax expense of $162 and $404, related to the operation of the Taxable Subsidiary, was recorded for the three months ended June 30, 2023 and 2022, respectively. A current federal income tax expense of $487 and $723, related to the operation of the Taxable Subsidiary, was recorded for the six months ended June 30, 2023 and 2022, respectively. A current state income tax expense of $64 and $170, related to the operation of the Taxable Subsidiary, was recorded for the three months ended June 30, 2023 and 2022, respectively. A current state income tax expense of $277 and $295, related to the operation of the Taxable Subsidiary, was recorded for the six months ended June 30, 2023 and 2022, respectively.

With respect to MTI, income taxes are accounted for under the asset and liability method pursuant to the provisions of ASC 740 related to income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

    A deferred tax expense related to the MTI temporary differences of $690 and $1,383 was recorded for the three months ended June 30, 2023 and 2022, respectively. A deferred tax expense related to the MTI temporary differences of $1,867 and $2,304 was recorded for the six months ended June 30, 2023 and 2022, respectively. A net deferred tax asset of $12,519 and $14,386, related to the cumulative book and tax temporary differences, existed at June 30, 2023 and December 31, 2022, respectively.

    All income tax positions taken for all open years are more likely than not to be sustained based upon their technical merit under applicable tax laws.