Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
1998-1 - Comprehensive Corporation Income Tax Regulations
Rule 26-51-718 - MODIFICATION OF APPORTIONMENT AND ALLOCATION
Rule 5.26-51-718(d) - Bus Lines and Trucking Companies

Every taxpayer engaged in the business of operating a bus line or trucking company both inside and outside of Arkansas shall determine its net income subject to Arkansas income tax by taking that portion of the total net operating income that the total number of miles operated within Arkansas bears to the total system miles.

Example: XYZ Trucking Company had federal taxable income of $1,000,000. It operated 10,000,000 total miles and 500,000 miles in Arkansas. The Arkansas apportionment factor is 500,000 divided by 10,000,000 or 5% and, assuming no adjustments to federal taxable income are necessary to arrive at apportionable income, Arkansas taxable income is $1,000,000 X 5% or $50,000.