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Income Taxes | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES The components of income tax expense from operations for the years ended December 31, 2024, 2023 and 2022 are as follows:
| 2024 |  | 2023 |  | 2022
Current: |  |  |  |  |
Federal | $ | 2,318 |  |  | $ | 904 |  |  | $ | 1,179 |
State | 1,625 |  |  | 828 |  |  | 1,004 |
| 3,943 |  |  | 1,732 |  |  | 2,183 |
Deferred: |  |  |  |  |
Federal | 595 |  |  | 3,051 |  |  | 4,815 |
State | (341) |  |  | 1,135 |  |  | 929 |
| 254 |  |  | 4,186 |  |  | 5,744 |
Total income tax expense | $ | 4,197 |  |  | $ | 5,918 |  |  | $ | 7,927 |
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. The Texas margin tax is considered a state income tax and is included in income tax expense on the Consolidated Statements of Operations. Since the tax base on the Texas margin tax is derived from an income-based measure, the margin tax is construed as 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 relating to the operation of the Partnership of $925, $440 and $496 were recorded in income tax expense for the years ended December 31, 2024, 2023 and 2022, respectively. Total income tax expense relating to the operation of MTI, a wholly owned C-Corporation subsidiary of the Partnership (“Taxable Subsidiary”), of $3,272, $5,478 and $7,431 was recorded in income tax expense for the years ended December 31, 2024, 2023 and 2022, respectively. The income tax expense from the Taxable Subsidiary operations for the years ended December 31, 2024, 2023, and 2022 differs from the "expected" tax expense (computed by applying the federal corporate rate of 21% to income before income taxes of the Taxable Subsidiary) as follows:
| 2024 |  | 2023 |  | 2022
"Expected" tax expense | $ | 2,669 |  |  | $ | 3,880 |  |  | $ | 6,702 |
Increase in income taxes resulting from: |  |  |  |  |
State income taxes, net of federal income tax expense | 913 |  |  | 1,357 |  |  | 1,135 |
Other non-deductible (non-taxable) items | 299 |  |  | 306 |  |  | (86) |
Other, net | (609) |  |  | (65) |  |  | (320) |
Actual tax expense | $ | 3,272 |  |  | $ | 5,478 |  |  | $ | 7,431 |
Cash paid for income taxes was $3,356, $1,404 and $2,250 for the years ended December 31, 2024, 2023 and 2022, respectively. Deferred taxes are the result of differences between the bases of assets and liabilities for financial reporting and income tax purposes. Significant components of deferred tax assets and liabilities at December 31, 2024 and 2023 are as follows:
| 2024 |  | 2023
Deferred tax assets: |  |  |
Bad debt reserves | $ | 130 |  |  | $ | 49 |
Goodwill and intangibles | 9,216 |  |  | 10,532 |
Employee benefits | 12 |  |  | 4 |
Operating leases | 30 |  |  | — |
Interest expense | 1,186 |  |  | 334 |
Tax loss carryforwards | 118 |  |  | 861 |
Other | 150 |  |  | 178 |
Subtotal | 10,842 |  |  | 11,958 |
Less: Valuation allowance | — |  |  | — |
Total net deferred tax assets | 10,842 |  |  | 11,958 |
Deferred tax liabilities: |  |  |
Property and equipment | (896) |  |  | (1,747) |
Operating leases | — |  |  | (11) |
Total deferred tax liabilities | (896) |  |  | (1,758) |
Net deferred tax assets | $ | 9,946 |  |  | $ | 10,200 |
Deferred tax assets are regularly reviewed for recoverability and a valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon future taxable income during the periods in which those temporary differences become deductible. In assessing the need for a valuation allowance, management considers all available positive and negative evidence, including the ability to carryback operating losses to prior periods and the expected future utilization of net operating loss carryforwards, the reversal of deferred tax liabilities, projected taxable income, and tax-planning strategies. On the basis of these considerations, as of December 31, 2024, management believes it is more likely than not that the Taxable Subsidiary will realize the benefit of the existing deferred tax assets. Federal income taxes refundable related to the operation of the Taxable Subsidiary of $44 and $29 for the years ended December 31, 2024 and 2023, respectively, are included in “Other current assets”. "Income taxes payable" includes a state income tax liability related to the operation of the Partnership of $931 and $567 for the years ended December 31, 2024 and 2023, respectively. Also included in "Income taxes payable" are state income tax liabilities related to the operation of the Taxable Subsidiary of $352 and $85 for the years ended December 31, 2024 and 2023, respectively. At December 31, 2024, MTI had net operating loss carryforwards for income tax purposes of approximately $2,546 related to state taxes. Of these net operating loss carryforwards, approximately $2,445 will expire between 2031 and 2041 and approximately $101 may be carried forward indefinitely. The federal net operating loss carryforwards were fully utilized in 2024. The operations of the Partnership are generally not subject to income taxes, except as discussed above, because its income is taxed directly to its partners. The net tax basis in the Partnership's assets and liabilities is greater (less) than the reported amounts on the financial statements by approximately $69,103 and $124,695 as of December 31, 2024 and 2023, respectively. As of December 31, 2024, the tax years that remain open to assessment are 2021, 2022 and 2023.

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