Company: SPH
Filing Date: 2025-02-12
Form Type: S-3
Source: 0001193125-25-024546
Chunk: 17

Company: SUBURBAN PROPANE PARTNERS LP
Filing Date: 2025-02-12
Form: S-3
Chunk 17
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 THE UNITHOLDER OF THIS OFFERING AND OWNERSHIP OF OUR COMMON UNITS, INCLUDING THE POSSIBLE EFFECTS OF CHANGES IN U.S. FEDERAL OR OTHER TAX LAWS.

Partnership Status

A partnership is not a taxable entity and generally incurs no U.S. federal income tax liability. Instead, each partner of a partnership that is
subject to U.S. federal income tax is required to take into account the partner’s allocable share of items of income, gain, loss, deduction and credit of the partnership in computing the partner’s U.S. federal income tax liability,
regardless of whether cash distributions are made to the partner by the partnership. Distributions by a partnership to a partner are generally not taxable to the partner unless the amount of cash distributed to the partner is in excess of the
partner’s adjusted basis in the partner’s partnership interest.

Section 7704 of the Code provides that publicly traded
partnerships will, as a general rule, be taxed as corporations. However, an exception, referred to as the “Qualifying Income Exception,” exists with respect to publicly traded partnerships of which 90% or more of the gross income for every
taxable year consists of “qualifying income.” Qualifying income includes income and gains derived from the transportation, processing, storage and marketing of certain minerals and natural resources, including natural gas and other
products of a type that are produced in a natural gas processing plant, the retail and wholesale marketing of propane, the transportation of propane and natural gas liquids, certain related hedging activities, certain activities that are intrinsic
to other qualifying activities, and our allocable share of our subsidiaries’ income from these sources. Other types of qualifying income generally include interest (other than from a financial or insurance business), dividends, real property
rents, gains from the sale of real property and gains from the sale or other disposition of capital assets held for the production of income that otherwise constitutes qualifying income. Based upon and subject to estimates and factual
representations made by us and our general partner and a review of the applicable legal authorities, Proskauer Rose LLP is of the opinion that at least 90% of our current gross income constitutes qualifying income. The portion of our income that is
qualifying income may change from time to time.

No ruling has been or will be sought from the IRS, and the IRS has made no determination
as to our status for U.S. federal income tax purposes. Instead, we will rely on the opinion of Prosk